XEROGRAPHERS LTD Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) IN this appeal M/s Xerographies Ltd., Ahmedabad have challenged the Order -in -Original passed by the Collector of Central Excise, Ahmedabad dated 28 -7 -1989 confirming a duty demand of Rs. 10,99,994.12 against them apart from imposing a penalty of Rs. 2 lakhs.

(2.) BRIEF facts are: M/s Xerographies Ltd. engaged in the manufacture of Plain Paper Copier Machines with the Trade Mark "Ricoh Murphy", were selling their products through two other Companies, viz., M/s Murphy (India) Ltd., M/s Mecotronics (P) Ltd. By Show Cause Notice dated 25 -2 -1987 appellants and the afore -mentioned two companies were asked to show cause against various charges. It was alleged that appellants (M/s Xerographies) were evading duty by under -valuation. It was alleged that M/s Xerographies and the other two Companies were related persons within the meaning of Section 4(4)(c) of the Central Excise Act, 1944 and therefore the transactions between the appellants on the one hand and two distributor Companies on the other hand were not on the basis of principal to principal basis. The matter was adjudicated by the Collector who held that the price at which the Photo Copiers manufactured by appellants were sold by M/s. Murphy (India) Ltd., and M/s. Mecotronics (P) Ltd. in the market would be the normal price for purposes of arriving at the assessable value of the goods in the hands of M/s. Xerographies.

(3.) WE heard Shri J. Vellappally, Senior Advocate assisted by Ms. Monica Singal, Ms. Rajani Natongu and Mr. Tarun Gulati for the appellants and Shri K. Srivastava, ld. SDR for the Respondent Collector.