FLASH LABORATORIES LTD Vs. CCE

JUDGEMENT

(1.) THIS appeal has been filed against confirmation of demand of duty of Central Excise amounting to Rs. 23,56,116.33.

(2.) THE facts of the case in brief are that the appellants are engaged in the manufacture of "Prudent" Tooth Paste. They filed price list. Price lists were approved by the Asstt. Commissioner under his Order -in -Original No. 87/CE/91. Pursuant to this order of the Asstt. Commissioner, four SCNs were issued to the appellants alleging that their entire production was being sold to their holding company M/s. Parley Products Ltd. and M/s. Parley Biscuits Ltd. which is another subsidiary company of M/s. Parley Products Ltd. and that the appellant was paying duty at the price list at which the holding company purchased the goods and not at the wholesale purchase price charged by the holding company in the course of wholesale trade. The Asstt. Commissioner while adjudicating the price list held that the holding company is a related person as per proviso (iii)) to Section 4(1) of the Central Excise Act, 1944.

(3.) SHRI M. Chandrasekharan, Ld. Sr. Adv. assisted by Shri Rupesh Kumar, Ld. Advocate submits that the four demands pertained to the period July '89 to Jan. 1991; that no doubt these four SCNs were issued pursuant to the orders dt. 14.2.1991 and 12.4.1991 which were quashed by the Commissioner (Appeals). Ld. Sr. Counsel, therefore, argued that the four SCNs were not maintainable.