1998 (3) TMI 413

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..... They are selling the goods on F.O.R. destination basis. The appellants have wholesale buyers which they call stockists. There are 800 such stockists. Agreement is entered into between the stockists and the appellant firm. In terms of the said agreement, retail price and the price at which the wholesale buyers or stockists sent the goods to consumers in retail, are also fixed and that is also at a margin of 10% higher than the wholesale prices at which such stockists purchase the goods from the appellants. It is, however, pointed out by the learned Advocate at this stage that normally the stockists are not able to get the margin of 10% as stipulated in the retail price-list. They are normally able to get a margin of 5%. There is no allegat....

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....rtisement for promotion of sale are actually to be carried out by the appointed stockists on their own cost and expenses. From all the aforesaid factors, learned appellate authority has concluded that the stockists are the persons related to the appellant firm as defined in Section 4 of the Central Excise Act, 1944 and consequently, valuation of the goods for the purpose of assessment to duty has to be made in terms of the third proviso to Section 4(1)(a) ibid. Hence this appeal before the Tribunal. 3. Learned Advocate, Shri S.K. Bagaria submits that fixation of retail price of the appellant's product is a normal commercial consideration. This by itself cannot be considered to be a factor relevant for treating the stockists as relat....