COMMISSIONER OF CENTRAL EXCISE Vs. CAMPCO

JUDGEMENT

(1.) The assessee-respondent, viz., M/s. Campco had been doing the job work on behalf of M/s. Nestle India Limited and was manufacturing chocolates exclusively for M/s. Nestle India Limited (hereinafter referred to as M/s. Nestle).

(2.) In addition, it was manufacturing the said chocolates for themselves as well, which were independently marketed. The dispute arose in respect of the price that was charged from M/s. Nestle by the assessee. The appellant-Revenue found that M/s. Nestle had advanced a sum of Rs. 4.5 crores to the assessee and as per the Revenue, that had influenced the price which was being charged. Thereby, the respondent was not charging the normal market price from M/s. Nestle for supply of those chocolates.

(3.) It resulted in issuance of Show Cause Notice dated 13-3-1995 followed by another Show Cause Notice dated 29-3-1995 covering different periods. The respondent was asked to show cause why differential duty as mentioned in the Show Cause Notice be not demanded from the assessee.