9911796707
TMI Blog2004 (9) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... dent. [Order per : T.K. Jayaraman, Member (T)]. M/s. Balsara Hygiene Products Ltd. (hereinafter referred as appellants) are engaged in the manufacture of goods falling under Central Excise Tariff Act, 1985. 2. The brief facts of the case are as follows : The appellants initially clear their goods to their C F agents. Subsequently the goods are sold to the stockist/distributors appoin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ex. Rules, 1944. Interest u/s 11AB was also demanded. While deciding the issue the adjudicating authority has relied on the following decisions of the Hon ble Supreme Court of India - M/s. Coromandal Fertilizers Ltd. [1984 (17) E.L.T. 607 (S.C.)] and M/s. Seshasayee Papers [1990 (47) E.L.T. 202 (S.C.)]. The adjudicating authority has also relied on para 3 of the letter dated 17-12-1993 addressed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owsoever . 3. Shri Prakash Seth, Advocate appeared on behalf of the appellants and Shri S.S. Bhagat, SDR argued on behalf of the Dept. 4. We have heard the rival contentions. The adjudicating authority has arbitrarily decided that the 5% out of the 8% margin allowed to the stockist is due to sales promotion of the goods. There is absolutely no basis for arriving at this conclusion. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stockist spent 5% of their margin on sales promotion activity. Under these circumstances inclusion of 5% of their margin in the assessable value cannot be sustained. 5. The demand in this case is for the period from 1993 to 1997. Section 11AC 11AB were enacted with effect from 28-9-1996. Therefore for the major portion of the demand Sections 11AC and 11AB cannot be invoked in view of decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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