TaxTMI 
TaxTMI 
TaxTMI 
1996 (10) TMI 262
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....e agreement provided that cement and steel necessary for the manufacture of pipes will be supplied to appellants by CMDA at the price of Rs. 250/- PMT for cement and Rs.1600/- PMT for steel. Appellants availed benefit of Notification 120 of 75 adopting self removal procedure. The price shown in the contract was shown as the invoice price and the appellants were paying duty on the invoice price and clearing the goods. Notice dated 25-3-1986 was issued to the appellants stating that there was suppression of two factors, namely, that the invoice price had been influenced by commercial or financial relationship between the appellants and the buyer which relationship had depressed the price and that loading charges incurred by the appellants bef....
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....t case. Condition contemplates absence of any commercial or other relationship (other than the relationship created by sale of the aforesaid goods) or the price remaining uninfluenced by any such relationship. Neither the show cause notice nor the impugned order indicates that between the appellants and CMDA there is any commercial, financial or other relationship other than the relationship created by the sale of the aforesaid goods. The show cause notice and the impugned order speak of extra commercial and financial considerations influencing the invoice price. 4. The influencing factor, according to the Department, was the contract between the parties under which CMDA agreed to supply steel and cement to appellants at prices indica....
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....pes for over a period of several years would have taken into consideration the possibility of escalation of prices of cement and steel and would also have taken into consideration the fact that CMDA were offering these materials at fixed prices, while submitting tender and arriving at the reasonable figure for tendering. Equally CMDA would have also taken into consideration these factors. Therefore in a sense, it is correct to say that the commercial relationship between parties created by the contract for sale of the finished goods would have influenced the invoice price but influence by such relationship is outside the ambit of condition (iv) of the proviso. The proviso makes it clear that the relationship created by the sale of the finis....