1998 (3) TMI 394

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....Shri R. Raghavan, and T.S. Balasubramanian, Advocates, for the Respondent. [Order per : Justice U.L. Bhat, President]. - Respondent, engaged in a manufacture of Tractors was filing price lists from time to time and clearing the goods on payment of duty on approved price. The dispute in this case relates to the period from February, 1990 to September, 1994. Respondent has two factories in Tam....

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....esult of investigation commenced on the basis of intelligence received, that in all such cases respondent collected Rs. 500/- per Tractor from the transport agency as "Freight Reimbursement Charges" (for short `FRC'). It was also found that from the wholesale dealers in respect of all Tractors sold from the depots, respondent collected in addition to the approved factory price, amounts ranging fro....

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.... each truck. In Tamil Nadu, some of the inputs enjoyed sales-tax concession if the manufactured Tractors are sold in Tamil Nadu, whenever the Tamil Nadu Tractors are removed to depots outside the State the benefit of the concession was not available. There was no such concession available in Karnataka. Respondent was collecting 50% of the amount of tax concession in respect of the Tamil Nadu Tract....

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....lass would be governed by the approved factory gate price. If in respect of depot sales, an additional amount is collected, that cannot affect the acceptability of the approved wholesale price unless the department can make out that the wholesale purchasers at the depots constitute a separate class of buyers within the meaning of proviso (i) of Section 4(1)(a) of the Central Excise Act, 1944. No s....