TaxTMI 
TaxTMI 
1999 (10) TMI 211
X X X X Extracts X X X X
X X X X Extracts X X X X
....ri C.S. Lodha, Advocate, for the Respondents. [Order per : Gowri Shankar, Member (T)]. - The question for consideration in this application by the department under Section 35E(1) of the Act is whether the expenses incurred upon advertising by Blow Plast Ltd (Blow Plast for short) towards sale of the travel goods manufactured by M/s. VIP Industries Ltd. (VIP for short) and sold to Blow Plast ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e sold to dealers to be no different from the price at which the goods were sold to Blow Plast. He has thus concluded that the advertising expenses incurred by Blow Plast was at its own instance and do not constitute an additional consideration towards the sale of the goods and hence could not form part of their assessable value. 3. The ground in the application, that for part of the perio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on by VIP. The amount of Rs. 3.00 crores approx spent by VIP on the remaining 60% thus shows a lack of proportion between the market share of sales and advertising expenses incurred. But this alone is insufficient to come to the conclusion that there has been undervaluation of the goods. This is especially so in the light of the Collector's finding, which is not challenged in the appeal that there....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r us to say that the ratio of the judgment will not apply. As we have noted before, it has to be borne in mind that there is no evidence to show that the arrangement was so entered into between the two parties so that VIP could hive off a major part of its advertising to Blow Plast with a view to evading duty. The absence of evidence to show the agreement between two parties making it mandatory up....