TMI Blog2007 (7) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... g agents. The appellants paid duty on the basis of the price list filed by them with the department on 1-3-1994. These goods, which were cleared under various brand names viz. Gold Spot, Thumps Up, Coco-cola etc. were sold by M/s. Sakthi Soft Drinks Ltd. at higher prices to their customers. After investigations into the nature of transactions between the respondents and their sole selling agents, the department took the view that the price charged by the respondents was affected by extra-commercial considerations. It was felt that the respondents were "related" to the buyer within the meaning of this expression under Section 4(4)(c) of the Central Excise Act as this provision stood at the material point of time. It was felt that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d M/s. Sakthi Soft Drinks Ltd. it is stated that the price declared by the respondents did not include costs like selling and distribution expenses, advertisement expenses, warehousing charges etc. It is also stated that the advertisement expenses incurred by M/s. Sakthi Soft Works Ltd. were tantamount to expenditure of the respondents and, therefore, the sale price without including such expenses was not a 'normal price'. According to the appellant, this very factual situation would establish mutuality of interest. On this point, after hearing both sides and considering their submissions, we have not found valid case for the Revenue. Apparently, the plea of relationship between the assessee and their sole selling agent has been abandoned b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing incurred advertisement expenses, there is mutuality of interest between him and the assessee. This appeal contains mention of a franchise agreement in the context of discussion on advertisement expenses. It appears from the records that this franchise agreement was not between the respondents and M/s. Sakthi Soft Drinks Ltd., but between the latter and M/s. Coco-cola company. Apparently, M/s. Sakthi Soft Drinks Ltd. advertised the products as required by the foreign company and not as required by the assessee. Hence the ground raised by the Revenue with reference to franchise agreement I does not advance their case any further. 3. In the result, the appeal fails and is dismissed (Dictated and pronounced in open Court) - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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