9911796707
TMI Blog1997 (5) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are transferred from the factory premises to various magazines outside the State of Orissa which ultimately are sold to persons enumerated in categories (i), (ii) and (iii). 2.There is no dispute that the goods are sold to Coal India Limited and Government undertakings at a rate much lower than the rate charged for the goods sold to ordinary customers who do not have any long term contract with the appellant. 3.There is also no dispute that excise duty is paid at the factory gate on the basis of three different prices :- (i) The price paid by Coal India Limited. (ii) A little higher price paid by public sector companies and Government undertakings. (iii) Goods sold to ordinary customers at a much higher rate. The ad valorem duty is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contemplated by Section 4(1) of the Central Excise Act, 1944. The "normal price" is a price at which the goods are usually sold to the wholesale dealers. There is no dispute that in this case the bulk of the goods produced by the appellant are sold to Coal India Limited. When the goods are not being sold at the factory gate and are being taken to various magazines all over the country, the question of determination of "normal price" of these unsold goods arises. The "normal price" in this case will have to be found by reference to the price at which the goods are sold to Coal India Limited, which according to the appellant consumes nearly 90% of the goods produced by the appellant. There is no reason to calculate normal price to be anythi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at which the assessee sold the goods to private buyers at the time of removal of goods from the factory was treated as the "normal price" of the goods. 9.We are of the view, the contention of the respondent must be upheld. The assessee has failed to make any declaration as to the price of the goods despatched by it to its various agents outside the State. At the point of time of removal of the goods, the assessee was not in a position to say that the goods were meant to be sold to Coal India or any other Government undertaking. The duty had to be calculated at the point of time of removal of the goods. At that point of time, the only way the duty could be levied was by calculating the duty on the basis of sales made to independent customer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
