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TMI Blog1991 (10) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of Section 4 of the Central Excises Salt Act, 1944. 2. The respondents manufacture medicinal and pharmaceutical preparations. Two of its preparations contain alcohol. These two preparations are, therefore, assessable to excise duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, which is administered by the State Government. The basis for calculation of excise duty thereunder is the basis provided by Section 4 of the Central Act. 3. It is an admitted position that all the preparations of the respondents are sold through a company called Franco Indian Pharmaceuticals Pvt. Ltd., which has been treated as a related person within the meaning of Section 4(c) of the Central Act. It is also an admitted position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to start coercive processes to recover the sums demanded. On 27th August, 1981 the Commissioner of Prohibition Excise upheld the decisions of his officers. On 26th February, 1982 the Collector of Bombay informed the respondents that their licences under the State Act were being held up due to the aforementioned arrears. Thereupon the writ petition was filed and, as aforementioned, was allowed by the order under appeal. 5. Section 4 (so far as it is relevant for our purposes) of the Central Act reads thus: "Where under this Act, the duty of excise is chargeable on any excisable goods with reference to value, such value shall, subject to the other provisions of this section, be deemed to be - (a) the normal price thereof, that is to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and, therefore, not eligible for the trade discount. 7. As the learned judge said, when an assessee sells his goods to the wholesale trade only through a related person, the price at which the related person sells the goods in the course of wholesale trade is the price on which excise duty is chargeable under Section 4 of the Central Act. If this is understood, it is seen that the price at which Franco Indian sells the respondents' preparations to wholesalers is the value on which excise duty can be levied thereon. 8. There is no merit in the appeal, and it is dismissed with costs. 9. Mr. Chogle applies that an expedited copy of this order should be ordered to be given to the appellants. We see no ground for such expedition here. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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