9911796707
TMI Blog1999 (12) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... i Revlon Pvt. Ltd. An agreement was entered into between appellant and M/s. Modi Revlon on 27-3-1995. As per that contract appellants have to manufacture cosmetics in accordance with the specifications provided by Modi Revlon. Quality of the produce should be such that it should confirm to the standard prescribed by Modi Revlon and their licence. In order to maintain quality control, various restrictions were incorporated in the contract. One of the terms of the contract was that the appellant should purchase raw-materials approved by Modi Revlon. Revlon's Trade Mark was to be affixed on the products and appellant's products should conform to the quality control and stands prescribed by Modi Revlon. Pursuant to that contract, appellant star ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned order it is crystal clear that the Department had no case that appellant was an agent of Modi Revlon or dummy of Modi Revlon or that appellant is related to Modi Revlon. Thus, the question that was considered by the Commissioner was regarding the valuation of the goods manufactured by the party for the purpose of imposing duty. 4. Before proceeding further we should observe that in the circumstances detailed above, Commissioner was clearly in error in taking the sale price of Modi Revlon of the goods for imposing duty on manufacture. When the Commissioner specifically states that the appellant was not an agent of Modi Revlon, the sale price of Modi Revlon was not at all relevant in fixing the value of the goods manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he should have added the same to the sale price of the appellant and duty imposed accordingly on that assessable value. This exercise has also not been undertaken by the Commissioner. 6. For enabling the appellant to start the manufacturing process amounts were advanced to it. Those amounts were paid back by adjusting in the value of the goods sold to Modi Revlon. Modi Revlon, as per the contract, exercised quality control on the goods manufactured. They exercised supervision over the purchase of raw-materials as well. It was only to safeguard the quality of the produce, which were to be marketed under their Trade Mark 'Revlon'. The amount payable by appellant by way of rental were paid through Bank Cheques. Advance given by Modi Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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