TMI Blog1980 (3) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... t Brothers as their sole production purchasers. M/s. Bhatt Brothers have been purchasing the entire production of the petitioners. The agreement stipulates that M/s. Bhatt Brothers shall sell leather pickers at a price not exceeding 12% of the price which they may be paying to the petitioners. 2.The petitioners were asked by the Central Excise authorities to get the price list approved. On 29th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged by the petitioners in appeal which they filed before the Appellate Collector. On 11th October, 1977, the Appellate Collector dismissed the appeal. It is under these circumstances that the petitioners have filed this petition. The only reason which the Assistant Collector of Central Excise has given is that the partners of the manufacturing firm and the sole production purchaser are "inter-re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice actually charged for the relevant sale and that the price is the sole consideration for the sale. Another conditions specified in that notification lays down that invoice price must not be influenced by any commercial, financial or other relationship whether by contract or otherwise between the manufacturer or any person associated in business with the manufacturer and the buyer or any person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat decision that excise duty is leviable on a fully commercial price consisting of manufacturing costs and manufacturing profits which the manufacturer charges his purchaser irrespective of whether the purchaser is a "related person" or not. It has next been held that in the name of "related person" a price other than a fully commercial price cannot be taken into account for the purpose of levyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing profits and, if it is so, to accord approval to them. 8.In the result, the petition succeeds and the impugned orders are quashed and set aside. A writ of mandamus shall issue directing the respondents to determine whether the prices shown by the petitioners in their price list are fully commercial prices representing their manufacturing costs and manufacturing profits irrespective of wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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