9911796707
TMI Blog1980 (3) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... to the petitioners. 2.The petitioners were asked by the Central Excise authorities to get the price list approved. On 29th June, 1976, the petitioners made a representation in that behalf. The Assistant Collector of Central Excise after having taken into account the petitioners, case made his order on 18th April, 1977 in which he stated that partners of Petitioner No. 1-Allied Textile Leather Industries - the manufacture and M/s. Bhatt Brothers - the sole production purchaser - were "Related persons". He, therefore, directed that petitioner No. 1 was not entitled to opt for assessment of their goods on the basis of the invoice price in terms of Notification No. 120 of 1975, dated 30th April, 1975. The petitioners were asked to file the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 associated in business with the buyer other than the relationship created by sale of the aforesaid goods. One more condition which that notification specifies is that directly or indirectly the proceeds of the subsequent sale, effected by the purchaser should not accrue to or for the benefit of the manufacturer or any person associated in business with him. 5.In Special Civil Application No. 119 of 1976, decided on 20th and 21st February, 1979 by a Division Bench of this C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing costs and manufacturing 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 whether the sole production purchaser is the "related person" and to accord approval to those prices if it is found that they are fully commercial prices. The respondents are directed to record their determination as directed above, within three months from to-day. Rule is made absolute accordingly with no order as to costs in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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