AMALGAMATION REPCO LTD. Vs. CCE

JUDGEMENT

(1.) The appellants were manufacturing components of automobiles and were clearing the same to M/s. Mahindra and Mahindra who were using such components received on OE spares in the motor vehicles manufactured by them. They were issued a notice that spares cleared to wholesale buyers for replacement market (RE for short) and the values thereof should be adopted for OE spares also. i.e. the value adopted for sale of the same goods in the RE market should be the value for sales effected to Mahindra and Mahindra for OE spares.

(2.) The issue of assessee having two different price structures for different class of buyers is no longer resintegra as has been settled in the case of Gora Mai Hari Ram Ltd. v. CCE, Delhi which has been followed in a series of decisions. The proposition that same manufacturer can have different prices or different assessable values in sales to a customer is now settled by the case of CCE and C Pune v. Hodak Engineering Pvt. Ltd. , wherein the departments contention that the same buyers cannot be in more than one class of buyer at the same time was not upheld. Following these well settled position of law and being bound by the same, we would not find any case to sustain the demands on a OE buyer at the prices applicable to a RE buyers whether the buyer is same or different.

(3.) In view of our findings, the orders of lower authorities confirming the demands on the appellant are set aside and appeal allowed. (Operative portion already pronounced in open Court on conclusion of the hearing)