1990 (4) TMI 134

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n brief are that the appellants manufacture electric wires and cables classifiable under Item 33-B of Central Excise Tariff. They filed price lists in the Form Part-I for their sales to wholesale dealers. Subsequently, they also filed price lists in Form Part-II on the ground that they are covered by the proviso to Section 4(1)(a) of the Central Excises & Salt Act, 1944. This form in Part-II is for determination of value under Section 4 of the Central Excises & Salt Act, 1944 for excisable goods for sale to classes of buyers not being related persons. The Assistant Collector held in his order that the contracts which were the basis for the price lists in Part-II filed by the appellants, had been executed with the wholesale dealers for the g....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... observation. The learned counsel referred to the purchase order and confirmation contract copies on record to show that these are valid contracts with different dealers entered into in accordance with normal commercial practice for bulk purchases in the course of wholesale trade. He also relied upon the decision of the Madras High Court reported in 1979 (4) E.L.T. (J 20) in the case of Sharada Silicate & Chemical Industries v. Collector of Central Excise, Coimbatore, to the effect that if different prices are charged from different customers based on rational commercial consideration, such prices charged from each of the customers should be taken as assessable value under Section 4 of the Central Excises & Salt Act, 1944. Similarly, he cit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... We find that these documents are in the nature of placing of orders on the appellants by the dealers and confirmation thereof by the appellants. What is referred to as a contract is actually the order confirmation sent by the appellants to the dealers. The question will be whether these can be called contracts at all. This question has been gone into in a decision by this Tribunal reported in 1985 (19) E.L.T. 527 in the case of Bombay Latex and Dispersions Pvt. Ltd. v. Collector wherein it has been held "It might appear rather anomalous that what is a contract otherwise in terms of the provisions of the Contract Act, 1872, is merely an agreement and not a contract when it comes to a sale of goods. But that is because of the diversity in th....