HIND LAMPS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this petition under Article 226 of the Constitution, the question that arises for determination is as to the mode of valuation of the goods manufactured by the petitioner company for the purpose of levy of excise duty under the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act).

(2.) FOR the purpose of determination of the value of its product, for levy of excise duty, the petitioner company submitted its price list to the Superintendent, Central Excise, Shikohabad (hereinafter called the Superintendent) containing the price at which it claimed to be selling its products to five companied (hereinafter referred to as the Customer Companies). He did not accept the price list, but directed the petitioner company to submit the price list in Form IV containing the prices at which five companies to which it sells its entire output (hereinafter referred to as the Customer Companies) sell those products. The petitioner company has challenged the direction of the Superintendent and has contended that for the purpose of levy of exciser duty the value of its products should be the prices at which it sells those products to the Customer Companies and not the prices at which they in turn sell those products to wholesale dealers or others.

(3.) FOR the sake of convenience the last four of the above companies will hereinafter be referred to as the Foreign Companies. The first of the above Companies namely, Bajaj Electricals Ltd., Bombay, holds 1,80,000 shares in the petitioner company. It is called A share holder. The four Foreign Companies together hold 1,80,000 shares. They are called B share holders. The petitioner company is engaged in manufacture of electric lamps, fluorescent lamps and miniature lamps. It sells its entire output of these products exclusively to the following five Customer Companies :