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2005 (2) TMI 710

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..... pellants manufacture hand knitting machines, which under an agreement are supplied in bulk to M/s. Singer Sewing Machine Company; that the said agreement, entered on 9-8-1963, was terminated on 3-1-1975; that with the introduction of Tariff Item 68 in the erstwhile Tariff w.e.f. 1-3-1975, their product became chargeable to duty under the said Tariff Item; that Notification No. 120/75 exempted excisable goods falling under Item 68 cleared from the factory and on sale, from so much of the duty of excise leviable thereon as is in excess of the duty calculated on the basis of the invoice price charged by the manufacturer for the sale of such goods subject to the conditions stipulated in the Notification; that Proviso (iv) of the Notification pr .....

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..... ced by commercial, financial and other relationship and, therefore, the Condition No. 4 of the Proviso to Notification No. 120/75 was not fulfilled and, accordingly, he confirmed the demand. He, further, mentioned that on appeal preferred by them, the Appellate Tribunal vide Final Order No. 515/93-A dated 5-11-1993, has held that though the distributorship agreement with M/s. Singer has been terminated w.e.f. 3-1-1975, informal arrangements for selling the machines through M/s. Singer remained up to 1-10-1979; that the Tribunal has, further, held that for the purpose of Notification, it could not be treated as a related person and the benefit of notification cannot be denied to the appellants; that on appeal filed by the Revenue, the Hon bl .....

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..... s cleared to M/s. Singer, who have also made available interest free loans to the appellants. M/s. Singer had also imposed some conditions on the direct disposal of the goods within the country by the appellants. They had also imposed conditions in other aspects of the manufacture, such as, colour scheme, finishing, quality control inspection etc. The learned SDR has also relied upon the decision in the case of Diamond Clock Manufacturing Co. Ltd. v. CCE, Pune - 1988 (34) E.L.T. 662 (T), wherein it has been held that the invoice price under Notification No. 120/75 is available only if the price is not authorised by any commercial, financial or other relationship. She has also mentioned that this decision of the Tribunal has been confirmed b .....

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..... bmissions of the learned Advocate. Sub-section (2) of Section 35A of the Act, empowers the Collector of Central Excise to call for and examine the record of any proceedings, in which any decision or Order has been passed under the Central Excise Act or Central Excise Rule made thereunder by a Central Excise Officer subordinate to him for the purpose of satisfying himself, as to the correctness, legality or poropriety of such decision or Order and to pass such Order thereof as he thinks fit. Sub-section (3)(a), further, provided that no decision or Order shall be varied so as to prejudicially affect any person unless he is given a reasonable opportunity of making a representation and, if he so desires, of being heard in his defence. Sub-sect .....

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