COLLECTOR OF CENTRAL EXCISE KANPUR Vs. LML LTD

JUDGEMENT

(1.) The respondent manufactures scooters in the State of U. P. which are sold throughout India. The question which arises for consideration in these appeals relates to the applicability of Rule 6 (a) of the Central Excise (Valuation) Rules. 1975 to such sales for the purpose of determining the value of the goods on which excise duty is leviable.

(2.) Prior to 4/10/1985, the respondent was selling the scooters directly to the buyers through their authorised representatives. After 4/10/1985, within the State of U. P. sales were made through dealers but outside the State of U. P. sales were made directly to the buyers through authorised representatives.

(3.) The Assistant Collector was of the opinion that the sales which were made to the purchasers should be regarded as wholesale sales and it is that price which should be taken into consideration for the purpose of determining the value on which the excise duty was leviable. The contention of the respondent, however, was that there was no wholesale dealer in respect of the scooters manufactured by the respondent and the value could not be determined either under Rule 4 or under Rule 5 of the said Rules but the determination had taken (sic to take) place in accordance with the principles contained in Rule 6. This contention was accepted by the Collector (Appeals) and was affirmed by CEGAT. Hence, these appeals.