9911796707
TMI Blog2000 (3) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... is questioned in appeal E/1144/97. In Order-in-Original No. 69/95 the period dealt with was from November, 1994 to February 1995. Period from August 94 to October 94 was dealt with in Order-in-Original No. 15/96. 2. Respondents in these appeals were manufacturing Acrylic Fibre Tow and Top. They were selling their produce at different prices to dealers in wholesale sale. On the basis of the price realised from the dealers they paid excise duty under Section 4(1)(a) of the Central Excise Act. Department took the view that the manufacturer was giving discount at different rates to different buyers, though the price of finished goods to be the same for each and every buyer. Department was of the further opinion that discount was being given b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be extended so long as the department is not able to prove that it resulted in certain extra commercial considerations or flow back of money." This finding was arrived at by the Commissioner in view of the decision of the Supreme Court in Metal Box case 1995 (75) E.L.T. 449 (S.C.). Reliance was also placed by him on Sphinx Precision Pvt. Ltd. v. CCE, Chandigarh - 1994 (74) E.L.T. 683 (Tribunal). This conclusion reached by the Commissioner is under challenge in these appeals. 4. Under Section 4(1)(a) of the Central Excise Act, 1944, duty of excise is chargeable on the value of the goods at which it is sold to a buyer in the course of wholesale trade for delivery at the time and place of removal. So the assessable value will depend on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcisable goods for the purpose of sub-section (1) of Section 4 is ordinarily determined with reference to the normal price at which such goods are sold, i.e., under clause (a) of sub-section (1) of Section 4." From this it is crystal clear that assessment to excise duty must be on the basis of normal price at which such goods are sold to each buyer. Section 4(1)(a) refers to the price at which goods are sold by the assessee to a buyer in the course of wholesale trade. The department has no case that price realised by the assessee on sale to dealers is not the actual value. Department has no case that there was some flow back of money from buyer to the assessee. Nor have they an allegation that assessee and buyer are related. Under these c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
