TMI Blog2008 (10) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... is not a related person and the price is the sole consideration for the sale as defined in Section 4(1)(a) of CEA 1944 – revenue appeal rejected. - E/1972/2003 - A/882/2008-WZB/C-II/EB, - Dated:- 22-10-2008 - S/Shri M.V. Ravindran, Member (J) and K.K. Agarwal, Member (T) Shri N.A. Sayyed, JDR, for the Appellant. Shri D.B. Shroff, Advocate, for the Respondent. [Order per : M.V. Ravindran, Member (J)].- This appeal is preferred by Revenue against Order-in-Appeal No. PKA/69-70/BELAPLJR/2003 dated 24-3-2003. 2. The necessary facts that arise for consideration are that respondent is engaged in the manufacture of Calcium Petroleum Sulphonate (CPS) falling under chapter 38111.00. Respondent manufactures this product out of wast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is the submission that since Lubrizol India Ltd., was giving all the technical knowledge and supervision, waste filter cake free of cost, hence the sale of CPS to Lubrizol India Ltd., is not on principal-to-principal basis. The assessable value of CPS should have been arrived at on the basis of comparable goods manufactured by Lubrizol India Ltd. It is the submission that value of waste filter cake has been arrived by the Commissioner in the case of Lubrizol India Limited and the addition of such value of waste filter cake to the value of CPS manufactured by respondent is justified. It is his submission that impugned order be set aside and Order-in-Original be upheld. 4. Ld. Counsel on the other hand submits that the issue of additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. was actually had a negative value as earlier they were spending for transportation in order to dump it at some distance. However, due to the prohibition of such dumping by the Maharashtra Pollution Control Board they had given it free to the appellant company in order to recover the absorbed Calcium Petroleum Sulphonate (CPS) of second quality @ Rs. 34,500/- PMT by solvent extraction process, convert the hazardous material into harmless silica overcome the restrictions placed by the Maharashtra Pollution Control Board. The tender and the purchase order placed by M/s. Lubrizol revealed that there was clearly a sate by the applicants to Lubrizol at a price determined in the Purchase Order. The transaction was on principal basis and it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated person and the price is the sole consideration for the sale as defined in Section 4(1)(a) of CEA 1944. Thus, the OIO No. M. VII/Addl. Commr./75/ Preeti/2001-2002 dated 28-3-2002 passed by the Additional Commissioner of Central Excise of Mumbai-VII Commissionerate is to be held as legally not proper and correct. Therefore, taking into consideration all the facts, I set aside the OIO No. M. VII/Addl. Commr/75/Preeti/2001-2002 dated 28-3-2002 passed by the Additional Commissioner of Central Excise of Mumbai-VII Comrnissionerate. 5. It is seen that tribunal vide order No. A/1738 1739/WZB/2005/C-II/EB dated 9-12-2005 [2006 (195) E.L.T. 99 (Tri.-Mum.)], was considering an appeal filed by revenue. In that case Commissioner (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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