9911796707
TMI Blog2002 (11) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... osur, Alwar and Bhandara. A small percentage of the components are also sold by them in the open market as spare parts for the vehicles. The question for consideration is what is the value to be taken for payment of excise duty in respect of the components which have been removed by the appellants from their factory at Madras and transferred to the Units at Hosur, Alwar and Bhandara. 3.The Assistant Collector, Collector and the CEGAT have held that the value has to be determined in accordance with Section 4(1)(a) of the Central Excise Act, 1944 (the Act). It has been held that ascertainable sale price is available. According to the appellants, in respect of the components which are transferred by them to their sister units, the value has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixed under any law for the time being in force or at a price, being the maximum, fixed under any such law, then, notwithstanding anything contained in clause (iii) of this proviso, the price or the maximum price, as the case may be, so fixed, shall, in relation to the goods so sold, be deemed to be the normal price thereof; (iii) where the assessee so arranges that the goods are generally not sold by him in the course of wholesale trade except to or through a related person, the normal price of the goods sold by the assessee to or through such related person shall be deemed to be the price at which they are ordinarily sold by the related person in the course of wholesale trade at the time of removal, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment at the price of Rs. 24.75 less a 25% discount. He submits that the dealers, Defence and Civil Department are all persons who are included within the definition of the term "wholesale trade" in Section 4(4)(e) of the Act. Learned Counsel submitted that the goods are being sold by the assessee to these parties at different prices. He submitted that, therefore, so far as these classes of buyers are concerned, the price for each such class will be the price at which the goods are sold to them. He submitted that there being different prices for different parties, there is no normal price at which the goods are ordinarily sold. He points out that the goods are not being sold to the different units at Hosur, Alwar and Bhandara. He submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n"8. careful consideration of the facts of this case as well as the case-laws cited, we are of the clear opinion that all the removals from the factory gate of engines as OE to manufacturing units of respondents would be deemed to be removals to a separate class of buyers when compared to removals for wholesale sale as spare parts. The law in this case is now well settled one, that removals to original equipment manufacturers is to be considered as removals to a separate class of buyers than removals in wholesale trade. Therefore, we find that the position that emerges in the case of these removals is that (a) removals are to separate class of buyers i.e. industrial consumers who used the said item for further manufacture of motor vehicles. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of each such class of buyers, the normal price would be the price at which the goods are sold to that class. The proviso does not mean or provide that merely because the assessee sells at different prices to different classes of buyers, the price of that commodity becomes an unascertainable price. The price of that commodity will remain the normal price at which those goods are ordinarly sold by the assessee to the public, in other words, the price at which they are sold in the market. The mere fact that sale is also made to the Defence or to the Civil Department of the Government at different prices would not mean that the price becomes an unascertainable price. In the case of the appellants, a price is ascertainable. They admit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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