TMI Blog1994 (12) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... sessable value of the Hydrochloric Acid (HCL) and bleaching powder manufactured by the appellants in terms of Section 4 of Central Excises and Salt Act, 1944. While submitting their price lists, the appellants declared a higher price for the dealers in Delhi region and for the dealers in outstations, a lower price was fixed. The price lists were submitted with the remark, The zonewise prices have been arrived at after taking into account the freight element and market conditions since the dealer/consumer is concerned with delivered price and not the ex-works price. In the Show Cause Notices issued to the appellants, it was alleged that the prices declared in respect of outstation dealers is lower than the prices for Delhi dealers which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the market. The appellants had been declaring ex-works prices zone-wise taking into consideration the element of freight from factory gate to destination and CST actually charged to meet the competitors price in a particular zone so that appellants landed cost matches with the price of the competitor manufacturer. The ld. Counsel also referred to a comparative chart submitted by them before the lower authorities. Arguing further, the ld. Counsel cited and relied upon the Tribunal s decision in the case of Gora Mal Hari Ram v. Collector of Central Excise - 1994 (69) E.L.T. 269 which was followed in the case of Ind-Sphinx Precision Pvt. Ltd. v. Collector of Central Excise - 1994 (74) E.L.T. 683 (Tribunal) as well as Tribunal s order No. 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf, freight may not be uniform in the whole of the zone. If this criterion is accepted as a general rule, then, ld. S.D.R. argued, factory gate sale would have no role to play in fixing assessable value. Citing the Bombay High Court judgment in the case of Music India v. Union of India - 1985 (25) E.L.T. 1032, ld. S.D.R. contended regional discounts are admissible only if established under agreements, or under terms of sale, or by established practice and the appellants have failed to show that they have fulfilled the criteria with evidence. The orders of the lower authorities, according to the ld. S.D.R., call for no interference as the appellants in all these cases have failed to substantiate their claim that the price differential as bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buyers occurring in proviso (i) to Section 4(1)(a) of the Act, read with definition of wholesale dealer under Section 2(k), and of wholesale trade under Section 4(4)(e) appear to cover not only a trader, manufacturer, broker, commission agent, contractor, stockist, industrtial consumer, Govt. and local authority, but also different dealers and buyers who deal in and buy for re-sale, or purchase their requirement in wholesale. 5. There appears no doubt that all the wholesale dealers and all the wholesale buyers in the whole of the country could not be taken to form a single class of buyers. The Tribunal also found that the Department cannot seek support from the Supreme Court decision in the case of Indian Oxygen v. Collector of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade in such goods, and that discounts cannot be given on extraneous considerations. From a consideration of the above decisions and on considering the facts of the present case, we are of the view that the ratio is applicable to the facts of the present case. The ld. S.D.R. urged with reference to the reasoning in one of the orders of the Collector (Appeals) that the appellants have not substantiated their claim by showing that the difference in price is on commercial considerations and that freight element is not such a consideration. However, it is found that before the Delhi High Court in the Indian Rayons case (supra), freight and transport expenses depending upon the distance of the region from the factory, as well as competitive pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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