9911796707
TMI Blog1986 (3) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ssential Commodities Act, 1955. On February 22, 1971 the Director (Vanaspati), who had been authorised by the Vegetable Oil Products Controller of India under sub-clause (a) of clause (ii) of the Vegetable Oil Products Control Order, 1947 to exercise the powers of the Controller under the said Order issued a notification in exercise of the powers conferred by sub-clause (i) of clause 6 thereof read with the notification of the Government of India in the Ministry of Food and Agriculture dated September 24, 1958 and in supersession of the notification of the Government of India issued on the above subject earlier fixing maximum prices at which the vegetable oil products might be sold in the various zones specified therein with effect from Feb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nistry of Food and Agriculture under the notification referred to above. Aggrieved by the said order, the appellant filed an appeal under Section 35 of the Act before the Deputy Collector (Technical) of Central Excise, Bahadurshah Zafar Marg, New Delhi which was rejected by him. The short order dated August 28, 1971 passed by the Deputy Collector (Technical) on that appeal read as follows : "I have carefully considered all the points raised by the appellants in their appeal and those made by them at the time of personal hearing. 2. The appellant's main contention is that the price of the vegetable product fixed by the Government in the Ministry of Food and Agriculture would form the basis of assessment of Central Excise duty only if the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty at a rate dependent on the value of the article, such value shall be deemed to be- (a) the wholesale cash price for which an article of the like kind and quality is sold or is capable of being sold at the time of removal of the article chargeable with duty from the factory or any other premises of manufacture or production for delivery at the place of manufacture or production, or if a wholesale market does not exist for such article at such place, at the nearest place where such market exists, or............" 4. Neither the Superintendent of the Central Excise nor the Deputy Collector (Technical) has recorded a finding in this case that the appellant had sold the goods in question during the relevant period at a price higher than t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a manufacturer. They are intended for ascertaining the wholesale cash price realised or realisable by the manufacturer in respect of the goods in question. Such price should ordinarily be fixed at arms length and in the usual course of business. It should be fixed bona fide without showing any kind of favour to the buyer. The wholesale cash prices of goods are bound to vary depending upon various economic factors such as supply, demand etc. etc.. There is no guarantee that the goods in respect of which the maximum price is fixed under a notification issued under the Essential Commodities Act, 1955 and Orders made thereunder would actually be sold at the maximum price mentioned in the notification. The wholesale cash price realised by the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principles, of course, keeping also in view the maximum price fixed by the Government of India under the Essential Commodities Act, 1955. But in the orders of the excise authorities which are impugned in this appeal we find that they have not made any attempt to determine the wholesale cash price of the goods in question in accordance with law. It appears that both the authorities felt that they were bound by the maximum prices notified by the Government of India and the excise duty was payable on that basis and not on the basis of the wholesale prices fetched by the goods even if they were lower than the controlled prices. They have not given any valid reason for rejecting the price list submitted by the appellant. The decisions of the Su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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