9911796707
TMI Blog2007 (5) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... to a primafacie conclusion that the price charged by the appellants was acceptable as assessable value and had passed the following Order :- "2. Shri C.S. Lodha, learned Advocate appearing for the appellants states that the appellants manufacture soaps and detergents for which they have their own machinery and manufacturing facilities. For the impugned period from May, 2000 to December, 2005, they had entered into a contract with M/s. Hindustan Lever for manufacturing soaps and detergents as per the specifications of M/s. Hindustan Lever and for selling the soaps and detergents to the latter. He has shown us a copy of the purchase order, which has various clauses requiring the appellants to manufacture the impugned goods to the standar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufactured product and it is only on approval by him that the product is released for sale by the seller to the buyer. In other words, the buyer has the right to reject the goods if he does not approve of them. If the manufactured goods are not in accordance with the buyer's standard, they are either reprocessed to bring them up to the requisite quality, or if that is not possible the goods are sold to the buyer for a different purpose if they are compatible with the specifications of some other product and provided that the buyer has a need for that product, or the goods are sold to others in the market as substandard goods at a lower price or the goods are destroyed. It is significant to note that the buyer is not obliged to purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied that the case of the appellants is squarely covered by the decision of the Hon'ble Supreme Court in the case of U.O.I, v. Cibatul Ltd. (cited supra), and since there is no allegation of the buyer namely, M/s. Hindustan Lever, being a related party and since there is no allegation that the price is not the sole consideration of sale, the price charged by the appellants is prima fade acceptable as the assessable value under the law. Accordingly, we waive the requirement of pre-deposit during pendency of the appeal. However, considering the high amount involved in the case, we fix regular hearing of the case on 30-4- 2007. Shri Lodha undertakes to produce evidence regarding the submission made by him in respect of all other manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty payable thereon. 5. In the second affidavit filed by Shri Mandeep Singh Tuli, Commercial Manager in M/s. Hindustan Lever Ltd., it has been stated that M/s. Hindustan Lever had entered into a sourcing arrangement with as many as twenty-six suppliers including the appellants and in respect of all of them, there were common conditions of sales and supply. The affidavit also gives the names of these twenty-six suppliers. It has been averred in the said affidavit that all transactions between the suppliers were on a principal to principal basis and that assessment in respect of supplies made by these suppliers were in terms of Section 4 or Section 4A based on the MRP. The affidavit also confirms that M/s. Hindustan Lever did not pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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