Tribunal remands case to determine if distributors are related persons, emphasizing invoice price independence.

The Tribunal set aside the lower authorities' decision, remanding the case for reevaluation by the Assistant Collector to determine whether the distributors were related persons of the appellants and which prices should be used to establish the assessable value. The Assistant Collector was instructed to consider the nature of the relationship between the appellants and their distributors in accordance with Supreme Court precedents, emphasizing that the invoice price should not be influenced by relationships beyond those arising from the sale of goods. The case was to be resolved within six months due to its age.

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Issues:
1. Whether the distributors are related persons of the appellants.
2. Determining the assessable value based on the prices at which the distributors sell the products.

Analysis:
The case involved M/s. Facit Asia Limited, Madras, manufacturers of typewriters, and their distributors in Bombay, Calcutta, and Madras. The primary issues were whether the distributors were considered related persons of the appellants and which prices, either the sale price from the appellants to distributors or the subsequent prices by the distributors, should be used to determine the assessable value.

Both lower authorities had deemed the distributors as related persons of the appellants, with the assessable value being the actual resale price by each related person. The appellants argued that a previous appeal had set a precedent favoring them, and the present appeal should be allowed on similar grounds.

The J.C.D.R. contended that the appellants should be considered related to their distributors based on a Supreme Court judgment, emphasizing the distributors' functions like advertisement and after-sales services. However, the notification in question required that the invoice price should not be influenced by any relationships beyond those arising from the sale of goods. The lower authorities had not adequately considered the definition of related persons under the Central Excises and Salt Act, as interpreted by the Supreme Court in previous cases.

The Tribunal set aside the lower authorities' decision and remanded the case for reevaluation by the Assistant Collector, emphasizing the need to examine the nature of the relationship between the appellants and their buyers in light of the Supreme Court's pronouncements. The Assistant Collector was directed to resolve the matter within six months due to its age.

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