9911796707
TMI Blog1986 (7) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... out in the Schedule to the agreement and production instructions given by the Reckitt & Colman. The purchaser was to supply soap dyes, while the material like soap paste formulations, chemicals etc. was to be procured by the petitioners. The soap to be manufactured by the petitioners had the brand name "DETTOL". Delivery of the soaps manufactured by the petitioners was on cash basis. It is not in dispute that the petitioner Company and Reckitt & Colman are two different and independent entities and have no interest in the business of each other and the two companies have no financial interest in each other. The agreement between the parties prescribe that Reckitt & Colman could reject the goods if they are not according to the standard fixe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioners to M/s. Reckitt & Colman does not represent wholesale cash price at which these goods can be available to independent buyer. It was further held that the transaction does not satisfy the conditions of normal price under Section 4. The Assistant Collector further held that the packing described as outer folding corrugated boxes has to be considered as initial packing and costs of such packing should form part of the assessable value. The order of the Assistant Collector is under challenge. 3. Shri Parikh, learned Counsel appearing on behalf of the petitioners, submitted that the conclusion reached by the Assistant Collector that the price at which the goods are supplied by the petitioners to Reckitt & Colman does not represent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he wholesale cash price and is the normal price under Section 4 of the Central Excises & Salt Act, and must be accepted as assessable value for the purpose of levy of excise duty. 4. Shri Parikh also submitted that the Assistant Collector was clearly in error in not permitting the deduction of cost of outer folding corrugated boxes from the assessable value. The learned counsel, in support of the submission relied upon the decision of the Supreme Court reported in 1985 (22) E.L.T. 306 (Union of India and others v. Godfrey Philips India Ltd. & Ors. The Supreme Court while considering the case of manufacture of cigarettes held that when number of cartons containing cigarettes are put in corrugated fibre board containers for delivery, then th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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