TMI Blog1992 (12) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... Part-1, were returned by the Supdt. of Central Excise on the ground that the price declared in Part-II in respect of sales to industrial consumers was higher than the price declared in Part-1 for the corresponding period and asked the appellants to explain why the price of Hydrofluoric acid declared in the list in Part-II should not be approved as price for the list in Part-1 also. The appellants explained that under the provisions of Section 4(l)(a) of the Central Excises and Salt Act, 1944 goods could be sold at different prices to different classes of buyers and such prices. They also explained that the prices under Part-II being higher than the Part-1 was a situation peculiar to Hydrofluoric acid industry. They pointed out that the deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sumers is higher than the price to independent wholesale buyers. He pointed out that dealers sell the goods after adding their margin of profit and in case the goods are offered to them at the price at which they are sold to industrial consumers, it would result in unhealthy and self-defeating competition. He stated that the Collector (Appeals) observation that the declared price in the list in Part-1 price was not really the price at which buyers could buy the goods in the normal course was without any basis since the appellants were selling over 40% their production of hydrofluoric acid at the factory gate price declared in the price list in Part-1. 4. On behalf of the Revenue, the learned SDR Shri Ram Parkash referred to the order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lared by the assessee in the list in Part-1 is lower than the price in the list in Part-11 then industrial consumers even though belonging to a distinct class would prefer to avail the lower price available in terms of the Part-1 price list instead of entering into separate contracts with the assessee for the purchase of goods at a negotiated price. 7. On behalf of the appellants the learned Advocate Shri V. Sridharan has contended that during the relevant period about 40% of appellants total production of hydrofluoric acid was being sold by the appellants at the factory gate to unrelated wholesale buyers. He has explained that the prices at which the goods are sold by them to different categories of buyers as determined purely on busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to value, such value, shall, subject to the other provisions of this section, be deemed to be (a) the normal price thereof, that is to say, the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale : Provided that - (i) where, in accordance with the normal practice of the wholesale trade in such goods, such goods are sold by the assessee at different prices to different classes of buyers (not being related persons) each such price shall, subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of IDL Chemical Ltd. v. Collector of Central Excise cited by the learned SDK (supra). In that case different prices were charged from three different classes of buyers of which the price charged at the factory gate to the normal buyers was highest and the prices charged to Government Departments/Undertaking were lower and the prices applicable to Coal India were the lowest. It was held by the Tribunal that sales to consignment agents would be assessable at the highest price under Section 4(l)(a) of the Central Excises and Salt Act, 1944. Evidently, this decision of the Tribunal is also not relevant to the issue under consideration in this case. 11. The only requirement under Section 4(l)(a) of the Act is that the price to be charged sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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