2007 (2) TMI 38

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....he seized goods valued at Rs. 66,636/- were confiscated and redemption was allowed on payment of fine of Rs. 10,000/-, besides imposing a personal penalty of Rs. 50,000/-. 2. The matter has come up after the remand order dated 29-11-2006 made by the Hon'ble High Court of Delhi restoring the appeal on the appellant's depositing the entire duty and penalty with a direction to appear before this Tribunal on 2-1-2007. 3. Briefly stated, the case of the Revenue was that, the appellant was manufacturing the excisable goods (Arnica Hair Shampoo and Arnica Hair Oil) in the brand name of the buyer, who also was a manufacturer, and selling the goods under an agreement to the buyer at self adopted lower price of the goods so as to get undue bene....

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.... the relevant period i.e 1987-88, it was held that, there were no independent sales to wholesale buyers inasmuch as the sales were effected under the agreement between the appellant and M/s. Bakson Homeo Pharmacy. It was observed that, the determination of assessable value did not only envisage determination of the whole sale price at the factory gate, but the price should be 'independent' whole sale price and should not be influenced by any other factor. 5. The adjudicating authority has categorically found that the goods manufactured by the appellant were manufactured in its own capacity, though in the brand name of the buyer and that they were sold to the buyer under the terms of the sale agreement. However, according to the adjudicat....

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....acture and sell the goods at ex-factory -price. The manufacturer was not concerned at what price the buyer would be selling his branded goods. Once a finding was reached that the parties were no. related, the price at which the goods were sold by the assessee to M/s. Bakson Homeo Pharmacy, was required to be considered as a normal price of the goods manufactured under the said agreement. It is open for the manufacturer to sell the goods on wholesale basis or even on semi-wholesale or retail basis to any buyer. There is no allegation that the goods were sold on retail basis under the said agreement and rightly so, because the entire bulk of the goods manufactured under the agreement was required to be sold to the said buyer alone. The activi....