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TMI Blog2001 (8) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 21-3-1994. They had certain difficulty in giving certain figures and therefore they requested that the assessments be kept provisional. They filed a provisional assessment bond and submitted details of agreements with 3 classes of buyers viz. Whole sale Dealers, Sale and Service Dealers; and Only Sales Dealers. Subsequently, from time to time price declarations were filed. The prices at which the refrigerators were sold to these 3 varieties of buyers were different. The prices charged from the only sales dealers (OSD) were the highest. Show cause notice dated 7-1-99 was issued proposing to adopt the price charged to OSD as the price for assessment for all clearances. Before the Assistant Commissioner the Assessee claimed that the 3 v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents cited by the assessee before him. As regards the other appellate order he observed that it was not binding upon him. The present appeal arises out of this order. 4. Shri D.B. Shroff referred to several judgments holding that different sale prices to different classes of buyers were permissible. He claimed that the quantum of sale was different in each class of buyers. The sales to WSD accounted for nearly 65% of the total sale. Such dealers had to maintain a show room and were also rendering after sale services both during and after the warranty period. Even where the refrigerators were purchased from OSD the services were to be rendered by them. He claimed that the sales to SSD accounted for about 30% of the total. The services rend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Mahindra and Mahindra Ltd. v. CCE reported in 1998 (103) E.L.T. 606 (T) would apply completely. [This order was upheld by the Supreme Court as reported in 1999 (111) E.L.T. A126]. Dealers are interested in offering free service facilities to the customers with a view to earn goodwill and attract customers. Advertisement by dealers is a well-known method of attracting customers and increasing business. Even when these activities are performed by dealers as per terms of agreement with the manufacturer, they do so not as agents of the manufacturer but as matter of trade practice and also in their own interest. Such activities promote the interest of both parties by maximising sales to the advantage of both. Undertaking of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessable value. 12. We further find that the assessees have made out a case for variation of price on the ground of quantity discount. Grading of buyers into different classes as per the quantities purchased is approved by the Supreme Court in the case of Metal Box India Ltd. - 1995 (75) E.L.T. 449 (S.C.). The same view was held by the Tribunal in the case Microtronics (India) Ltd. [2000 (122) E.L.T. 579 (T)]. 13. We thus find that the Appellants were right in charging different prices to 3 varieties of distributors and dealers each forming a class of buyer. Therefore there was no justification for adopting the highest price for all the 3 categories. 14. The Appeal is allowed. The price list should be finalised in terms of this Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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