TMI Blog1986 (4) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Bombay Tyres International [1983 (10) TMI 51 - SUPREME COURT OF INDIA, NEW DELHI] the view taken by the High Court that the definition of 'related person' in Clause (c) of Sub-Section (4) of Section 4 is unconstitutional and void has to be rejected. The Assessing authorities were therefore, clearly wrong in taking the wholesale cash price at which the excisable goods were sold by the wholesale traders as the value of excisable goods for the purpose of levy of excise duty. The wholesale cash price at which the excisable goods were sold by the respondents to M/s. Alok Textiles and other wholesale dealers was the only price liable to be taken for determination of the value for the purpose of levy of excise duty. We would therefore partly al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the respondents by filing a Writ Petition in the High Court of Gujarat. The High Court by its Judgment dated 28.10.1980 upheld the contention of the respondents that the concept of 'related person' as set out in Clause (c) of 'Sub-Section (4) of Section 4 was ultra vires entry 84 in list I of the 7th Schedule to the Constitution and the definition of that expression must therefore be declared to be unconstitutional and void. The High Court also held that the value of the excisable goods must therefore be taken to be the wholesale cash price at which the excisable goods were sold by the respondents to the wholesale dealers and that the post manufacturing expenses were not to be included in the wholesale cash price for the purpose of dete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash price at which the excisable goods were sold by the wholesale traders as the value of excisable goods for the purpose of levy of excise duty. The wholesale cash price at which the excisable goods were sold by the respondents to M/s. Alok Textiles and other wholesale dealers was the only price liable to be taken for determination of the value for the purpose of levy of excise duty. 4. The High Court also observed that for the purpose of levy of excise duty what was liable to be taken into account was "the fully commercial price which is reflected by the manufacturing cost and the manufacturing profits" which clearly implied that post manufacturing expenses and post manufacturing profits were liable to be excluded in determination of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of such assessment. There will be no order as to costs. CA No. 221/81; 6. The facts giving rise to this appeal are identical with the facts in Civil Appeal 222/81 which is disposed of by judgment, the only difference being that the respondents are a firm manufacturing electrical appliances and two of the wholesale dealers to whom these electrical appliances were sold by the respondents were M/s. Batliboi's Co. and M/s. Nirupam Trading Co. We would, for the reasons given by us in the judgment in Civil Appeal No. 222/81, dispose of the present appeal also in the same terms with no order as to costs. CA No. 900/81: 7. The partnership firm manufacturing watch cases and certain other goods at Rajkot and other cases are sold by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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