9911796707
TMI Blog1994 (8) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Collector of Central Excise dated 30th May, 1990 and remitted the matter for a fresh decision. 2. The facts are as under : The appellant, M/s. M.G. Shahani & Company (Delhi) Ltd. are engaged in the manufacture of shampoos falling under sub-heading No. 3305-09 of CET, 1985. The manufacture is under the brand names "Halo" and "Palmolive". The shampoos were sold by the appellant exclusively to the owner of the brand name of M/s. Colgate Palmolive. These two, the appellant company and Colgate Palmolive are independent companies. Colgate Palmolive in order to promote its own trade names and marks, incurred advertisement and publicity expenses in respect of the said branded products. Further, Colgate Palmolive also incurred cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. MGS manufacture the goods in their own factory and have all the infrastructure for the said manufacturing activity. It is also not the case of the department that there was any relationship between M/s. MGS and M/s. CP other than that of the seller and buyer. It has also not been alleged that the brand names belonged to M/s. MGS or that M/s. CP were obliged to incur any expenditure on advertisement and publicity at the instance of M/s. MGS. The case of the Collector of Central Excise v. Kerala Electric Lamp Works Ltd. decided by the Tribunal has been relied by the learned counsel and I find that this decision supports the case of the noticee. The distinction drawn by the learned counsel in the matter of treating `manufacturer brand owner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. The right of rejection of goods by CP clearly establishes that the M/s. CP and M/s. MGS are two separate entities and the transaction of sale and purchase between them is on a principal to principal basis." 4. Ultimately, after referring to the case law he concluded in relation to the advertisement as follows :- "In the present case M/s. MGS were engaged in the manufacture of shampoos for and on behalf of M/s. CP under the latter's brand name of `Halo' and `Palmolive'. I, therefore, hold that the advertisement charges incurred by M/s. CP of their own for selling goods purchased by them and to promote their brand name Halo and Palmolive, cannot be added to the price charged by M/s. MGS." In relation to testing charges he held as follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated by show cause notice dated 3rd July, 1989 were dropped. Aggrieved by this, the matter was taken up in appeal to CEGAT. The Tribunal, after dealing with the arguments, has, under the impugned order, held as under : ". . . . It appears that the Collector decided the case mainly on the basis of the two letters dated 17th January, 1985 and 2nd May, 1985 of M/s. Colgate Palmolive addressed to the respondents and jumped to the conclusion that the price at which the respondents sold the goods to M/s. Colgate Palmolive is the correct assessable value and the proposal to take into account the advertisement expenses incurred by M/s. Colgate Palmolive in the show cause notice is not sustainable. To us, the impugned order appears to be a laconic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive. Equally, the other findings as to testing charges and the loss. Therefore, the remit was fully warranted. 7. Having regard to the course which we propose to adopt there is no need to discuss the merits of the case. To our mind, it appears that the Tribunal has adopted an easy course in remitting the matter to the Collector. On the materials on record, being an appellate authority, the Tribunal itself should have analysed the evidence and given a factual conclusion. If this course had been adopted the decision could have been rendered in one way or the other. The remit was superfluous and the parties had argued at length. Therefore, we set aside the impugned order of the Tribunal and remit the matter to it. The Tribunal is directed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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