IDL CHEMICALS LIMITED Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellant, IDL Chemicals Limited, manufactures explosives at its factory at Sonaparbat. The raw materials for explosives are obtained from diverse sources. The finished goods are sold in the following manner:-

(2.) There is no dispute that the goods are sold to Coal India Limited and Government undertakings at a rate much lower than the rate charged for the goods sold to ordinary customers who do not have any long term contract with the appellant.

(3.) There is also no dispute that excise duty is paid at the factory gate on the basis of three different prices:-