9911796707
TMI Blog2001 (11) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... ocks. They had been selling the clocks to approximately 70 independent wholesale dealers situated throughout the country. Apart from sales to such wholesale dealers, they had also sold clocks to M/s. Ajanta Sales Agencies (hereinafter referred to as ASA) which is an independent Partnership Firm. The percentage of sales made by the First Respondent to ASA during the period from 1991-92 to 1994-95 are as under : Year Corrected total Clearance (SCN) Figures + Excise Duty + Sales Tax Out of that sold to ASA (as per SCN) % of Sales to ASA 1991-92 108319671 6787672 6.27 1992-93 224870339 29336895 13.05 1993-94 431153602 399982556 92.77 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd therefore, there was no suppression of facts. The Commissioner of Central Excise dropped the proceedings against the Respondents, holding that proviso (iii) to Section 4(1)(a) was not applicable, that ASA was not a related person in terms of Section 4(4)(c) and also holding that the demand was barred by limitation. Hence, these appeals by the Revenue. 2. We have heard Shri Karnail Singh, S.D.R. and S/Shri V. Shridharan and D.H. Shah, learned Advocates. 3. We find that the grounds raised in the Review Order as well as in the Appeal filed pursuant thereto are that the Commissioner has not dealt with the related person aspect with reference to the evidence adduced in the Show Cause Notice, that Advertisement expenses incurred by ASA is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as other miscellaneous advertisements. These expenses were more than those incurred by Noticee No. 1 or Noticee No. 2 themselves. (iv) Sales to the independent buyers were made only against specific orders and after receiving advance payments by way of Demand Drafts or post-dated cheques, whereas sales to ASA were effected without either any such specific orders or advance payments. (v) At the end of the day, the stock remaining with Noticee No. 1 or Noticee No. 2 was transferred to ASA. (vi) ASA had issued circulars and communications to the dealers of the product of Noticee No. 1 and Noticee No. 2 regarding the products in issue. (vii) Noticee No. 1, Noticee No. 2 and ASA were located in a common plot. Noticee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner has held that in the absence of any allegations that these communications were issued by ASA by or on behalf of the Respondents and in the absence of any allegations that these communications disclose any extra commercial consideration as passing between the Respondents and ASA, the mere existence of such communication cannot support the charge of relationship. In the same manner, he has dealt with the remaining grounds in detail. 5. The Review direction and the appeal filed pursuant thereto do not question correctness of the conclusion arrived at by the Commissioner after considering the various grounds in the Show Cause Notice. The conclusion of the Commissioner is contested only on the ground that he has wrongly relied upon the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h clocks were sold to ASA existed, has not been challenged in the appeal filed by the Revenue and further, the appeal of the Revenue requires to be rejected. We further note that the wholesale price at which clocks were sold to independent dealers is not in dispute and in such a situation that price alone will be the basis for determining assessable value. Since the Respondents paid duty on the basis of such price in respect of sales to ASA also, no differential duty can be demanded by invoking proviso (iii) to Section 4(1)(a). The finding of the Commissioner regarding non-applicability of the above provision of law, is correct in law in view of the decision of the Tribunal in the case of Hingorani Air Products v. CCE, 1997 (89) E.L.T. 513. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
