ULTRA REFRIGERATORS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) The duty demand in this present case is made on the basis that the appellant -manufacturer was marketing his goods through a related person and for that reason the value for the purpose of assessment of the goods should be the related person's sale price to unrelated parties, after discarding the sale price to the related person. As against this finding, learned Counsel for the appellant has emphasised that the appellant was selling part of the goods to unrelated buyers also and those prices were lower than the sale prices to the so -called related party. Given this fact, it is his contention that the price to the related persons cannot be called non -commercial price at all, since that price was higher than the price to unrelated persons. The learned Counsel took us through the appellant -assessee's reply in the original proceedings as well as the finding in the adjudication before Additional Commissioner.

(2.) We have perused the record and considered the submissions made by both sides. The provision in the Valuation Rules, with regard to sale to related persons, is an exception to the general rule. That exception is applicable only when the manufacturer so arranges that goods are not sold except to or through related person. In the present case, goods are being sold to unrelated parties also. To such a case, the exception does not apply. In any case, the price to the related person cannot be called a non -commercial price since the same was higher than the price to unrelated parties. In these circumstances, we find no merit in the findings of the Commissioner (Appeals).

(3.) In the light of what is stated above, the appeal is allowed after setting aside the impugned order.