TaxTMI 
TaxTMI 
1998 (8) TMI 291
X X X X Extracts X X X X
X X X X Extracts X X X X
....PC/PL/93 dated 26-2-1993 passed by Assistant Collector, Vapi approving 14 price lists filed by the appellant in respect of `Babool Toothpaste', `Promise Toothpaste' and `Promise Toothpowder' manufactured by the appellant and directing that wholesale price charged by M/s. Balsara Hygiene Products Ltd. (for short BHPL) be treated as ex-factory prices of the appellant, has filed the present appeal. 2. The appellant is the owner of unregistered brand name `Babool' and BHPL is the owner of the brand name `Promise'. Appellant, on its own, has been manufacturing Babool toothpaste and Promise toothpaste and toothpowder and selling bulk of Babool toothpaste and entire production of Promise toothpaste and toothpowder to BHPL at prices declare....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e not being sold in the ordinary course of business, that BHPL was meeting certain overhead charges like advertisement charges, inspection charges, etc. which should form part of the assessable value of the goods, therefore, the transactions between the two cannot be regarded as at arm's length and the price charged by appellant to BHPL was not the sole consideration for sale of the goods and called upon the appellant to show cause why the prices shown in certain price lists should not be loaded with the expenses of advertisement and inspection incurred by BHPL and to show cause why the prices at which goods were sold by BHPL in wholesale trade should not be treated as assessable value and duty charged accordingly. Copy of the notice dated ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ble value of either brand of toothpaste; However, he held that the expenses incurred by BHPL for advertisement should be included in the assessable value of Babool brand toothpaste. The short question, therefore, is whether in respect of Babool brand toothpaste, the advertising expenses incurred by BHPL should be included in the assessable value. 6. The lower authorities relied on and Shri R.D. Negi, SDR also relies on Union of India and Ors. Etc. v. Bombay Tyre International Ltd. Etc. 1983 (14) E.L.T. 1896 (S.C.) to support the conclusion arrived at by the lower authorities that expenses of advertisement incurred by the buyer should be included in the assessable value. This identical contention was considered by the Tribunal in Mah....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Motors Ltd. - 1998 (100) E.L.T. 468 (Tribunal) = 1997 (19) RLT 842 (Tribunal) and Appeal Nos. E/2270/90-A and E/3003/92-A (M/s. Escorts Ltd.) are in confirmity with the decision of the Supreme Court in Philips India Ltd. and the facts of each case have to be appreciated having regard to the trade practice, the quantum of manufactured products and of sales made to the dealer in question, the amount of money spent by the manufacturer or dealer for advertising the products, the proportion between the sales of the dealer and the cost of advertising incurred etc. Shri R.D. Negi, SDR places reliance on the decision of the Tribunal in Alembic Glass Industries Ltd. v. Commissioner of Central Excise, Baroda - 1997 (95) E.L.T. 292 (Tribunal). In that....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... being sold to BHPL. The terms of the agreement did not oblige the buyer to advertise the goods or to meet the expenses of advertisement. In the agreement, BHPL agreed to purchase goods on principal to principal basis from the manufacturer and the manufacturer agreed to sell to BHPL the goods in such quantity, at such price and on such terms and conditions as specified in the Schedule to the agreement. According to the Schedule, the quantity purchased and sold during the quarter shall be indicated by the buyer at least 30 days prior to the commencement of the quarter and if the manufacturer was not in a position to supply such quantity, it shall indicate the quantity it can supply at least 15 days prior to the commencement of the quarter. T....