TMI Blog2018 (6) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... ontract price - reliance placed in the case of SOMAIYA ORGANICS (INDIA) LTD. Versus CCE, ALLAHABAD [2009 (7) TMI 293 - CESTAT NEW DELHI], where it was held that while applying Rule 6(b)(i), it is the general factory gate price under Section 4(1)(a) to be adopted. The appellant has adopted the correct price - no demand can be made against the Appellant - appeal allowed - decided in favor of appellant. - Appeal No. E/151/2010 - Order No. A/86578/2018 - Dated:- 25-5-2018 - Hon ble Shri Ramesh Nair, Member (Judicial) And Hon ble Shri Raju, Member (Technical) Shri Prasad Paranjape, Advocate for Appellant Shri S.J. Sahu, Asstt.Commr. (A.R) for Respondent ORDER Per : Ramesh Nair Brief facts of the case are that the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the appellant. Hence the present appeal. 2. Shri Prasad Paranjape Ld. Counsel appearing on behalf of appellant submits that the Annexure H to appeal shows the details of sale of caustic soda during the period to wholesale buyers M/s Cynamide India Ltd and cleared to Century Rayon. It can be seen that major quantity of caustic soda was sold to independent buyers in the course of wholesale trade at ₹ 7100/-PMT. Therefore payment of central excise duty thereon was in conformity with the provisions of Section 4(1) of Central Excise Act, 1944 and as approved by the department. The fractional quantity of caustic soda sold to one independent buyer M/s Cynamide India Ltd. on contractual price cannot be basis for levy of excise du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s credit to own unit (sister concern) hence entire exercise is revenue neutral. 3. Shri S. J. Sahu Ld. AC (AR) appearing on behalf of revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both the sides and perused the records. The issue involved in this case is whether the appellant adopted correct price of the caustic soda for clearance from one plant M/s Century Chemicals to another plant M/s Century Rayon which are the two plants of Century Textile and Industries Ltd. and thereby paid correct duty hereon. The appellant had declared two pricelists one declaring normal price in the course wholesale trade and other declaring contractual price in respect of sale to M/s Cynamide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he comparable goods manufactured by the assessee or any other assessee after making the adjustments, as mentioned in the proviso to this sub-rule. The normal price as defined in Clause (a) of Section 4(1) is the price at which such goods are ordinarily sold by the assessee to buyers in course of wholesale trade for delivery at the time and place of removal, where the assessee or buyer are not related person and price is sole consideration for sale. The term wholesale trade has been defined in Section 4(4)(e) as sales to dealers, industrial consumers, Government, local authorities and other buyers who purchase their requirement otherwise than in retail. First proviso to Section 4(1)(a) permits a manufacturer to have different normal pric ..... X X X X Extracts X X X X X X X X Extracts X X X X
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