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2019 (4) TMI 1342 - AT - Central ExciseValuation - manufacture of cakes and pastries falling under chapter CTH 1905 Brand Name “Monginis” - relationship between appellant and dealer - principal and consignment agent relationship - Rule 7 of the Central Excise (Valuation) Rules, 2000 - HELD THAT:- On perusal of the agreement, it does not reveal that M/s. Banami was acting as a consignment agent of the appellant. A consignment Agent is required to receive the goods manufactured and dispatches them to customers, identified by the manufacturer (Principal), accompanied by invoices issued on behalf of the manufacture. On perusal of the terms of agreement indicates otherwise. There is absolutely no restriction as to whom the goods are being sold further. The goods are sold under the invoices of M/s. Banami at MRP fixed by the appellant - there is nothing on record to conclude that M/s. Banami was acting as a consignment Agent of the appellant. The transaction between appellant and M/s. Banami is on Principal to Principal basis and hence, Excise Duty is to be paid only in terms of Section 4 (1a) of the Act - there is no justification for resorting to valuation in terms of Rule 7 of the Central Excise Valuation Rules, 2000 - appeal allowed - decided in favor of appellant.
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