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TMI Blog2000 (2) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... e member Bench was constituted to hear the matter. Later it was enlarged to Five members in view of the submissions made by the Departmental Representative that view taken by the three member Bench in the case of Bombay Latex Dispersions Pvt. Ltd. [1985 (19) E.L.T. 527 (T)] is also to be considered while deciding the issue herein. 3.The appellants are engaged in the manufacture of various chemical products like distilled turpentine and dipentine oil etc. They sell the goods at the factory gate to wholesale dealers. The appellants filed price list in Part-I for such clearances. Apart from that they also effected sales to contracted buyers who purchased bulk quantities. In the said contracts with the buyers, the price agreed upon for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants, submitted that buyers who purchase bulk quantities at a discounted price are of different class of buyers. In the instant case, purchasers entered into contracts with the assessee to buy bulk quantity within stipulated time to get concession in the price. As can be seen from the impugned order, five of them (M/s. Advance Chemical Sales Corporation, Delhi, M/s. Manmohan Chemical Ind., Delhi, M/s. Shree Chemical, Bombay, M/s. Agro Chemical, Bombay and M/s. Mukesh Chemical, Bombay), did not lift the quantity as agreed within the stipulated time, but nevertheless, goods lifted by them during the period was at a price as per terms of the contract. Since the goods were lifted in pursuance of the contract, the contract price would preva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee at different prices to different classes of buyers (not being related persons) each such price shall, subject to the existence of the other circumstances specified in clause (a), be deemed to be the normal price of such goods in relation to each such class of buyers;" 6.Learned Departmental Representative, appearing for the Revenue justified the view taken by the Eastern Zonal Bench in the case of Indian Aluminium Company, referred to above. In that case, it was observed that 'contract price is admissible and was approved by the authorities only on the fulfilment of contract'. He contended that price lists in part-II cannot be the basis in determining the normal price since buyers had failed to fulfil the conditions of clearing q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t-I and not price list proforma Part-II. If contract was not fulfilled as agreed to between the parties whether that can be the subject matter in determining the valuation and assessment in terms of Section 4 of the Act is an issue to be considered. In other words, whether Taxing Authority can discard the price lists in part-II in determining the assessment on the ground that terms and conditions of the contract are not fulfilled by the contracting parties. Contract is an agreement which is enforceable in a court of law. Contract is an agreement in between the parties. It confers rights and creates obligations on respective parties to the contract. Contract is a right in Personal as against right in Rem. It means parties to the contract can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvantage of a concessional price even though he had not cleared the full quantity of the goods within the stipulated period, or permits him to clear the goods beyond the time, the respondents cannot say that the petitioner should not have granted the quantitative concession as the goods have not been cleared within the stipulated time". The decisions referred to by the DR are also not relevant to decide the issue involved herein. In the cases cited by him, the issue was whether particular transaction constitutes a contract or not. That is not the situation here. In the show cause notice, it was specifically charged that price list in part-II was not applicable for not performing the contract. It means the existence or formation of contract ..... X X X X Extracts X X X X X X X X Extracts X X X X
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