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TMI Blog2018 (1) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Tariff Act, 1985. During the course of audit of the appellant, for the period April 2010 to May 2011, it was noticed that the goods were manufactured by the appellant as per an agreement dated 8.7.2010 with M/s Zydus Wellness Ltd. In terms of the agreement, the appellant was required to undertake manufacture making use of the technical knowhow and specifications of the goods as supplied by M/s Zydus. The process was subject to quality control and supervision of the representative of M/s Zydus and goods were to be cleared to M/s Zydus exclusively, bearing the trade mark of M/s Zydus. Further, as per the agreement, the raw materials are to be procured by the appellant only from the suppliers identified by M/s Zydus. The sale price of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old on the basis of the prices agreed between two parties. Finally, he submitted that in terms of Section 4(1)(a) of the Central Excise Act, 1944 transaction value should be accepted, since the price is the sole consideration and relationship between the appellant and M/s Zydus is at arms length. He also relied on various case laws and specifically in the case of Shivani Detergent Pvt. Ltd. Vs. CCE, Indore - 2016 (11) TMI 1342-CESTAT-New Delhi. 4. The ld. DR justified the impugned order. He argued that in terms of the agreement between the appellants and M/s Zydus, it is evident that all the conditions specified in Explanation to Rule 10A are satisfied and hence it is to be concluded that goods have been supplied by the appellant as the jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of removal of goods from the factory of the job -worker, but are transferred to some other place from where the said goods are to be sold after their clearance from the factory of job-worker and where the principal manufacturer and buyer of the goods are not related and the price is the sole consideration for the sale, the value of the excisable goods shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of said goods from the factory of job-worker; (iii) in a case not covered under clause (i) or (ii), the provisions of foregoing rules,wherever applicable, shall mutatis mutandis apply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. There is no dispute that the first condition has been satisfied. But dispute is whether the conditions (ii) and (iii) above are satisfied. In terms of the agreement, it is evident that the appellant is required to manufacture the goods exclusively for M/s Zydus, and using their specifications as an agent of M/s Zydus, and using the technical knowhow relating to the product which will be supplied by M/s Zydus. It is further specified in clause 4.1 which is relevant is reproduced below : "4.1 GHL shall at its own cost, purchase such raw materials, ingredients, packs and packaging material of such standard, quality, specifications and grade for the manufacture of the Product as may be prescribed by ZWL. The pre-mix required for the Produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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