CHANDRAVATI POLYMER (P) LTD Vs. C.C.E.

JUDGEMENT

(1.) THE appeal relates to duty demand of Rs. 91,200/ -. The issue involved is valuation of the decorative laminates manufactured and cleared by the appellants to their consignment agents and subsequently sold from the agent's premises. The Revenue has held that assessment of these goods also should have been at the ex -factory price applicable to same goods. The appellants submitted in their reply that ex -factory sales were contract sales to Integrated Coach Factory and this price being a contract price cannot be the basis for the assessment of goods sold to other parties. Their submission on this issue as contained in their letter dated 6 -1 -1997 in reply to the Show Cause Notice is reproduced below : -

(2.) WE have heard ld. Counsel for the appellant as well as the ld. D.R. Revenue's contention is that the appellant should have got a price list approved in respect of sale to other parties, if the contract price to Railway price was not to be treated as ex -factory price for the purpose of assessment of those goods.

(3.) WE have perused the records and have considered the rival submissions. We find that the appellants had clearly stated in their reply that the ex -factory sales was contract sale to a particular customer and that sale price cannot be adopted for the purpose of assessment of the rest of the goods. This submission has not been considered by the lower authorities. The law is clearly on the side of the appellant. Section 4 of the Central Excise Act specifically allows assessment of goods based on different prices as applicable to different classes of buyers. In the instant case, the sales to Indian Railways constituted contract sale to a different class of buyer. This price could not have been adopted for the assessment of sales to other parties. The orders of the lower authorities are, therefore, clearly not sustainable. They are set aside and the demand quashed. Appeal allowed with consequential relief, if any, to the appellant.