TaxTMI 
TaxTMI 
1982 (7) TMI 263
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....has also imposed a penalty of ₹ 1 lakh under rule 173Q of the Central Excise Rules, 1944, on the ground that the appellants had not filed proper price lists before clearing the goods. The Collector has observed in his orders that the appellants and their buyers M/s. Lloyd Insulations (I) are related parties. In this connection he has relied upon the fact that the Directors in the firm of appellants and the partners in the firm of buyers were related. He has accordingly held that the assessable value was to be determined with reference to the price of sales of M/s. Lloyd Insulations (I) and as they only sell in retail he has held that the highest retail price less the rebate of excise duty should form the basis. He has also held that M....
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....ey have also pointed out that as rule 10 has already been abolished the Collector was wrong in relying on that rule and rule 9 could not be applied in their case as it is not a case of clandestine clearances. The new Section 11A could not also be applied in their case as it was brought into force only from 15-11-1980 whereas the charge covered by the Collector's orders is of a much earlier period. In any case the Collector should have allowed deduction on account of freight and other expenses so as to bring the sale price of M/s. Lloyd Insulations (I) to the level of factory gate clearances from the premises of the appellants. On these and other grounds tbe appellants have challenged the Collector's orders. 3. The appellants were heard in ....
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....m duty in respect of durable containers of returnable nature as this description is met by the gunny bags used for packing the slag wool there is no scope for demanding duty on the containers. 5. The view taken by the Collector that the appellants and their buyers M/s. Lloyd Insulation (I) are related parties, is not correct in law. The appellants are a private limited concern and their buyers are a partnership concern. Merely because the directors in the former and the partners in the latter are related it cannot be said that the two firms are related. Even if the Collector had made the prices of M/s. Lloyd Insulation (I) as the basis he ought to have allowed rebate on account of freight expenses, distribution and other selling expen....
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.... finds that in the facts of the case rule 10 of the Central Excise Rules, 1944 could not be applied. The judgments cited in this connection are condusive on this point. Rule 9(2) equally has no application as there is no dispute that price lists have been filed and that also on more than one occasion of the question of suppression of facts or of clandestine clearances could not therefore, arise. Section 11A is also ruled out as it was not there at the relevant time. Because of all this the Collector's orders are legally untenable and the Board does not consider it necessary to go into the question of the legality of the other findings of the Collector on the merits of the case. For the period not covered by B. 13 bond the orders of the Coll....