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TMI Blog2018 (6) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(a) and (ii) Price list No. 35/94 w.e.f. 09.03.1994 in Part-II claiming assessable value of Rs. 7775/- PMT under proviso (iii) of Section 4(1)(a) for the goods to be cleared to M/s. Cynamide India Ltd. as per contract dated 01.12.1993. Two SCNS dated 27.09.1994 and 18.10.1994 came to be issued (in the name of Century Chemicals) demanding total differential duty of Rs. 11,71,726/- for the period from March,1994 to May, 1994 alleging that supply of Caustic Soda at the wholesale price of Rs. 7075/- is mainly made to M/s Century Rayon which is holding company for Century Chemicals and on the other hand the contract price shows that the goods are capable of being sold @ Rs. 7775/-PMT. The appellants were asked to show cause as to why the contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dras Rubber Factory-1987 (27) ELT 553 which held that different price list for different classes of buyers is specifically recognized under Section 4(1) provision (i) of the Central Excise Act. Different prices can be declared with reference to different classes of buyers and each price is deemed to be a normal price of such goods. He also relies upon Hon'ble Supreme Court's decision in the case of UOI V/S. Bombay Tyre International and others - 1983 ELT 1896 (SC) which held that Section 4(1) does not contemplate a conceptual price but the price at which the assessee actually sales his goods in wholesale trade to dealers. He submits that in case of SOMAIYA ORGANICS (INDIA) LTD.Versus CCE, ALLAHABAD- 2009 (244) E.L.T. 115 (Tri. - Del.) it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew that in the case where for goods used or consumed by the assessee or on his behalf in production of other articles, it is a general factory gate price at which the goods are sold in whole sale trade to independent buyers and under Section 4(1)(a) is to be adopted rather than price to some particular buyer /contract price. Our view is based on the judgment of Tribunal in the case of SOMAIYA ORGANICS (INDIA) LTD. Versus CCE, ALLAHABAD- 2009 (244) E.L.T. 115 (Tri. - Del.) . In para 6 of the said judgment it is held as under: 6. As regards, the first point raised by the appellant, since the entire production of SDS of the appellant's unit at Captainganj is stock transferred to their unit at Barabanki for use in the manufacture of chemical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 6(b)(i) when the value of the captively consumed goods is to be determined on the basis of the value of comparable goods manufactured by other manufacturers - whether specially negotiated price to a particular class of buyers can be adopted or only the general wholesale price under Section 4(1)(a) to dealers through whom the goods are sold to general public is to be adopted. We are of the view that while applying Rule 6(b)(i), it is the general factory gate price under Section 4(1)(a), the price at which the goods are available to any wholesale dealer, rather than the price to some particular class of buyers/contract price, which must be adopted, as the general wholesale price at the factory gate under Section 4(1)(a), is much more repr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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