2002 (11) TMI 105

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..... ption notification'). 3.The assessee manufactures hand knitting machines and sells them, in bulk, to M/s. Singer Sewing Machine Company (for short, 'M/s. Singer'). It claimed benefit of the notification. The Superintendent, Central Excise, issued a notice dated 16th July, 1976 to the assessee to show cause as to why the benefit of the exemption notification should not be denied to it. On 3rd January, 1979, the Assistant Collector of Central Excise, Thane, Div. I, accepted the contention of the assessee extending the benefit of the notification. However, the Collector (Appeals) issued a show cause notice on 24th December, 1979 calling upon the assessee to show cause as to why the benefit of the notification should not be denied and conseque .....

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..... duty of excise leviable thereon as is in excess of the duty calculated on the basis of the invoice price (excluding duty and local taxes, if any, included in such price) charged by the manufacturer from the sale of such goods:- Provided that if the aforesaid exemption shall be admissible only if : (i) to (iii) xxx xxx xxx (iv) the invoice price is not 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;" 6.A perusal of the exemption notification, extracted above, shows that wher .....

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..... ph (21), the Tribunal noted : "The nature of relationship between Simac and Singer, Singer's interest in the sale of Simac products, Simac's dependence on Singer for finances, sale, marketing etc., exceeded the normal area of a buyer and the seller and would have made the prices tainted, but for the exemption Notification No. 120/75-C.E." So also, in paragraph (24), it held as under : "We have seen that the involvement of Singer in the activities of Simac was more than that of a normal buyer. For the purposes of Section 4 of the Act it could amount to a favoured buyer, but for Notfn. No. 120/75-C.E., the same criteria could not apply." 8.A perusal of the above extracts of the order under appeal shows that the Tribunal was not very clea .....

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