2003 (7) TMI 546

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....maining is sold in wholesale. Of this remaining amount sales at the factory gate account for around 6%, the rest being sold from its depots. The sales from the depots are made to buyer who is described as wholesaler, there being only one in each state. In the Union Territory of Chandigarh, States of Tamil Nadu, Andhra Pradesh, Karnataka, Uttar Pradesh, Madhya Pradesh, and Punjab, however, there are no wholesale in such cases. In these areas the sales are made to one Exide Products Ltd., the appellant's subsidiary. It is not disputed that the sales to the subsidiary are at the same price at which they are sold to the wholesale dealers of the other states. Of the total quantity sold in wholesale (excluding, as we have done, the clearances to ....

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....se of wholesale trade at the time of removal, to dealers (not being related persons) or where such goods are not sold to such dealers, to dealers (being related persons), who sell such goods in retail." 4. The Bombay High Court in Ralliwolf Ltd. v. Union of India - 1992 (59) E.L.T. 220 found that this proviso requires the following conditions to be fulfilled before it to be applied: There should be mutuality of interest, the price charges should not be normal price but the price lower to the normal price, and extra commercial considerations should have resulted in reduction in the normal price. Parties must satisfy the definition as contained in Section 4(4)(c) of the Act. There is no dispute before us that the Exide Products Ltd. i....