1998 (7) TMI 315

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....orrectness of the duty paid on acetic acid cleared to the branches of the appellant at Bombay and Ahmedabad during the period from January to July, 1983. It was found that during the period from January 1982 to July 1983, appellant had cleared acetic acid to independent wholesale dealers as well as to the branches at Ahmedabad and Bombay and the invoice prices shown in respect of clearances effected to the two branch offices were much less than the invoice price at which sales had been effected to independent wholesale dealers during the period. Accordingly, four show cause notices were sent to the appellant stating that in respect of the transfers effected to these branches (notice mentioned one sister concern), duty was liable to be paid ....

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....so much of the duty of excise leviable thereon as is in excess of the duty calculated on the basis of the invoice, price (excluding duty and local taxes, if any, included in such price) charged by the manufacturer for the sale of such goods;"         [Emphasis supplied] The proviso to notification states that the exemption shall be admissible only if the conditions in clauses (i) to (v) of the proviso are satisfied. Provisos (ii), (iii), (iv) & (v) read thus :- "(ii) the manufacturer avails of the said exemption uniformly in respect of all goods, sold by him. -- fall under the Item aforesaid; (iii) the manufacturer certifies that the price referred to in the invoice represents the price ....

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....944. 5. Assessable value under Section 4(1)(a) of the Act would depend upon the normal price of goods sold i.e. price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale. The prices at which the goods were sold at the branch offices to independent wholesale dealers can be regarded as the normal price only if such prices govern factory gate sales also at the time and place of clearance of stock to branches. The grievance of the appellant as projected before us is that goods were being sold at the factory gate during the relevant months to independen....