2006 (10) TMI 20

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....th sides and perused the record. 2.The only issue arising for consideration in these appeals is the valuation of molasses sold by the appellant sugar mills. Therefore, all the appeals were taken for consideration together and remain disposed of under this common order. 3.The dispute has arisen in these circumstances. The appellant co-operative sugar mills are all members of a federation of c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 502. The ld. Counsel has also relied on the decision of this Tribunal in the case of Morinda Co-op. Sugar Mills v. CCE - 2001 (132) E.L.T. 27 (T) = 2001 (45) RLT 613 support of his contention that transaction value is to be accepted even when the sale is between members of a federation co-operatives. 5.We find that the substance of the dispute is not on whether the assessee and the buyers wer....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al Excise is to be done  @ 20%  of the price of the Molasses sold w.e.f. 1-3-94." 6.It is clear from the above portion of the letter that "price is not the sole consideration for the sale" and that relationship between the buyer and seller (whatever that be) has affected, the price. It is well settled that only a commercial price qualifies the test of being a normal sale price. Since ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f it being not a commercial price. In the Morinda Co-op. Sugar case, this Tribunal held in favour of the assessee upon a specific noting that sale price was a commercial price. 8.In view of what is stated above, we agree with the contention of the ld. SDR that the rejection of the sale price was correct and demand of duty based on the sale price to non-members is sustainable. In the result, the....