9911796707
TMI Blog2007 (5) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... ants 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 standards specified by the buyers with a clause for rejection and provision for selling rejected materials after defacing the brands/logos. Shri Lodha states that M/s. Hindustan Lever has similar contracts with near ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem. 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 purchase the goods manufactured by the seller regardless of their quality, and that in the event of rejection by the buyer the alternatives present be fore the seller extend to the sale of the manufactured goods to othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 manufacturers similarly placed for supplying the same goods to M/s. Hindustan Lever at the contracted purchase price, at the time of final hearing of the appeal. The Stay Petition is disposed off in the above terms." 14. When the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 provide either raw materials or soap dies free of cost. 6. Learned DR at the time of hearing on 30-4-07 sought time for seeking instructions from the concerned Commissioner in regard to these two affidavits and he also stated that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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