1990 (2) TMI 215

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....nsumed captively the entire quantity manufactured by them. With effect from 22nd June 1983 they started selling the product to independent buyers, namely Government Undertakings, Industrial establishments, wholesale dealers. 3. During the period from 1-12-82 to 21st June 1983 Hydrochloric acid (HCL) was consumed captively whereas from 22nd June 1983 to 31st December 1985 there was both captive consumption, as well as sale to outside parties. The price at which the HCL was sold to the outside buyers was ranging from Rs. 70/- to Rs. 75/. 4. While so the following six show cause notices were issued proposing to adopt assessable value of Hydrochloric acid of the strength of 30-33% approved for Metture Chemicals, for the HCL manufactured a....

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....s on the ground that the percentage of sales is very low, namely 6.4%. He also submitted that it is now settled that as long as there is factory gate price which is genuine it should be adopted for the purpose of assessment in respect of goods captively consumed. He relied upon Indian Oxygen v. CCE [1988 (36) E.L.T. page. 723], U.O.I. v. Bombay Tyre International [1983 E.L.T. 1896]. He also submitted that percentage of sales is irrelevant in view of the various pronouncements of not only of Supreme Court but also this Tribunal reported in A.K. Roy v. Voltas Ltd. (1977 E.L.T. page 177), Indo National Ltd., Nellore v. UOI (1979 E.L.T. J334), Woodcraft Products Ltd. v. CCE, Shillong [1988(35) E.L.T. page 495], Window Glass Ltd. v. CCE, Calcutt....

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.... number of wholesale dealing. 10. Quantum of goods sold by a manufacturer on wholesale basis is entirely irrelevant. The fact that the said sale may be few or scanty does not alter the true position. (A.K. Roy & other v. Voltas Ltd.). It is also settled that if ex-factory price is acceptable, such ex-factory price shall be the basis for determination of the value under Sec. 4 of the Central Excises and Salt Act. [Indian Oxygen Ltd. v. CCE reported in 1988 (36) E.L.T. 723]. It is also well settled that percentage of sales at factory gate is not a determinative factory. Sales at factory gate as long as they are genuine they shall be the basis of the assessable value. (Woodcraft Products Ltd. v. CCE, Shillong reported in 1988 (35) E.L.T. pa....