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TMI Blog2000 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... elling the goods at a higher price at the depot and were realising 7% to 18% more than the price fixed at the factory gate sales. Thereby, show cause notices were issued for re-fixing the normal value of the goods sold. This attempt of the department was opposed by the appellants. According to them, the excise duty should be leviable on the basis of the ex-factory price and that they are entitled to have expenses incurred for maintaining the depot deducted from the sale price for arriving at the assessable value. Adjudicating authority rejected these contentions and confirmed the demand. Appeal filed against the order of adjudication was dismissed. The matter came up before this Tribunal. By final order No. 1063 to 1066/95-A, dated 20-12-19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f finished goods at branches/depots should in fact be the part of the value at the factory gate, since these elements cannot be deducted under the provisions of section 4 ibid. Since the distribution expenses and interest on inventory of finished goods at branches/depots are initially borne out by the party and ultimately flows back from the buyers to the company against the sale of their goods, the same enriches the value of the products by not adding these elements at factory gate, party has deliberately lowered down their prices at factory gate, since they are having a very little sale i.e. less than 3% at factory gate". When goods are sold by a manufacturer from depots, for finding out its value at the time and place of removal namely, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce was made to the decisions in A.K. Roy And Another v. Voltas Limited reported in 1977 E.L.T. (J 177), Indian Aluminium Cables Ltd. v. CCE reported in 1989 (40) E.L.T. 86 (Tribunal) and Century Laminating Co. Ltd. v. CCE, Meerut reported in 1999 (114) E.L.T. 410 (Tribunal). Relying on the Supreme Court's decision in A.K.Roy and Another v. Voltas Ltd., a Larger Bench of 3-Members of this Tribunal in Indian Aluminium Cables Ltd. observed "the determination of the wholesale cash price may not depend upon the number of wholesale dealings. The quantum of goods sold by a manufacturer on wholesale basis is entirely irrelevant. The fact that such sales may be few or scanty does not alter the true position". In the instant case, 3% of the produce a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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