GOVERNMENT OF INDIA Vs. ASHOK LEYLAND LTD

JUDGEMENT

(1.) The question that falls to be decided in this writ appeal is about the determination of the excisable value of the motor vehicles and certain other products manufactured by the respondents Messrs Ashok Leyland Ltd., for the purpose of excise duty under the Central Excises and Salt Act, 1944 (for Short the Act). The appeal has been filed by the Union of India against the judgment of a learned Single Judge of this court allowing the writ petition filed by the respondents in W.P. No. 4764 of 1978.

(2.) The facts giving rise to the question for determination in the writ appeal may briefly be stated as follows - The respondents sell their products to the main dealers appointed by them. They enter into agreement with the main dealer. The price at which the respondents sell their products to the main dealers varies with the price at which the main dealer sells the same products. It is contention of the Union of India that the main dealer appointed by the respondents is only a distributor or a sole selling agent and consequently, will be a related person within the meaning of the definition of the word under Section 4(4)(c) of the Act. The statutory authorities in that view held that the respondents would be liable to pay excise duty on the price at which the main dealer sells the products to the customers. The respondents filed the writ petition before this court challenging the stand of the Union of India and other statutory authorities and contended that the main dealer would not be a related person within the meaning of the Act. This contention was accepted by the learned single Judge, who by his judgment dated 28-9-1981, allowed the writ petition. It is, in these circumstances, the Union of India has filed this writ appeal.

(3.) At the outset it is necessary to refer to Section 4 of the Act as far as it is relevant.