1997 (6) TMI 210

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.... covered by the ratio of the decision of the Hon'ble Supreme Court in the case of Metal Box reported in 1995 (75) E.L.T. 449, the matter could be decided ex parte. 2. The ld. Advocate has pleaded that the appellants would have adduced arguments to distinguish the facts of their case if they had been given an opportunity to explain their position. He has therefore pleaded there has been a denial of principles of natural justice. 3. The ld. JDR has no objection to the remand of the matter. 4. We observe it goes without saying that the law laid down by the Hon'ble Supreme Court has to be followed. But that is not to say that applicability of the ratio of the decision has not to be examined after taking into consideratio....

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....tice. The law in this regard has been settled by the Supreme Court. See Metal Box India Ltd. v. Collector of Central Excise - 1995 (75) E.L.T. 449 (S.C.). In that case the wholesaler was buying 90% of the total production and advancing huge amount free of interest and was obtaining 50% discount from the normal price. It was held that advance of huge amounts free of interest had necessarily entered into consideration between the parties leading to 50% discount being allowed. This was regarded as a special treatment to the wholesaler. It was further pointed out that in the absence of the advances, the manufacturer would have been required to borrow the amounts from Banks or the like on interest which materially would have got reflected in the....