TMI Blog1982 (2) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... in an industrial unit with capital investment of the value of not more than Rs. 10/- lakhs. This fact is not disputed and indeed admitted by the respondents. 3. Transistorised radio-sets attract excise duty under Item 33A of the First Schedule to the Central Excises and Salt Act, 1944. The duty is leviable on an ad valorem basis as a percentage of the value of the goods. Normally, therefore, the manufacture by the first petitioner of radio sets would attract duty of excise. The first petitioner, however, claims exemption from payment of duty of excise by virtue of an exemption Notification No. 208/77-CE, dated July 2, 1977 (copy Annexure 'B' to the petition). Under this notification exemption can be claimed if two conditions are fulfilled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. 208/77-CE was, admittedly, accepted by the respondents' authorities. A dispute was raised with regard to the petitioners' claim for exemption as a consequence of the aforesaid supply order accepted by the first petitioner from the Gramophone Company. The stand taken was that for the sets supplied by the first petitioner to the Gramophone Company the latter must be regarded as the manufacturer in view of the fact that the said sets bore the brand name of Gramophone Company and, therefore, it will be the capital investment of the Gramophone Company which would become relevant for ascertainment of the claim of the first petitioner to exemption postulated by Notification No. 208/77-C.E. In the return two alternative stands have been taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is industrial unit falls within the ambit of the aforesaid Notification as the admitted value of the capital investment plant and machinery, of this industrial unit is not more than Rs. 10 lakhs. The price on which the radios are sold by the first petitioner to the Gramophone Company at arm's length is Rs. 105/- per set. Both the conditions of the notification being satisfied, the petitioners are entitled to claim the exemption postulated by the said Notification No. 208/77-CE. 6. The contention that the first petitioner and the Gramophone Company are "related persons" or have interest in the business of each other cannot be accepted. No agency is proved on the record and the case is clearly covered by our judgment in M/s. Sylvania Laxm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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