VOLTAS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, HYDERABAD

JUDGEMENT

(1.) M /s. Voltas Ltd., Hyderabad and Revenue both have filed appeals against OIA dated 31 -3 -2004.

(2.) IN the impugned order, the Commissioner (Appeals) has allowed the Revenue appeal by remanding the matter to the Original Authority. The brief facts of the case are as follows : -

(3.) M /s. Voltas are the manufacturers of refrigerators, an excisable commodity. They entered into two separate agreements with M/s. L.G. Electronics India (Pvt.) Ltd. and M/s. BPL Ltd., who manufacture and supply them refrigerators with their brand names viz. LGEIL and BPL. M/s. Voltas paid duty on the goods on the basis of the contract price. Revenue noticed that the price which they charged to L.G. Electronics and BPL is much less than the price at which M/s. Voltas sold their own brand name Alwyn Refrigerators. Hence Revenue proceeded against M/s. Voltas by issue of show cause notices. The Original Authority considered the issue and held that M/s. Voltas and the other two parties are not related in terms of Section 4 of the Central Excise Act and also the transaction between them is on principal to principal basis. He also found that the price charged by M/s. Voltas to BPL, LGEIL represented Section 4(1)(a) price and therefore there is no need to go to Section 4(1)(b). Under these circumstances, he dropped the proceedings against M/s. Voltas. Aggrieved with the Order of the Original Authority, Revenue appealed to Commissioner (Appeals). The Commissioner (Appeals) held that the original authority has not clearly examined the relation between M/s. Voltas and the other buyers holding that the transaction is on principal to principal basis. Therefore he remanded the matter to the original authority who examined the question of relationship.