2013 (4) TMI 902

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....-declaring the assessable value, the Directorate General of Central Excise Intelligence conducted investigation and on the basis of the evidence unearthed during the investigation, it was alleged that certain products manufactured by the appellant were cosmetic products, not ayurvedic medicines and that in respect of some products clearances were being made to related persons M/s. Ishaan Marketing (p) Ltd. (IMPL) and M/s. IRL Marketing (p) Ltd. (IRLMPL) who were selling goods at much higher price while duty was being paid on the lower price at which the goods were being sold to M/s. IMPL & M/s. IRLMPL. On this basis, five Show Cause Notice covering the period from 01.04.1991 to 30.06.1997 were issued to the appellant demanding total duty of....

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.... With regard to value, the Apex Court gave following directions for re-determination of value and re-quantification of duty:-  i) Wherever IRLP had sold products to the IMPL as also to independent third parties including Hotels, the least price charged to the third party may be taken as the basis for the sales made by IRLP to IMPL for arriving at the assessable value for such products. ii) wherever the products were never sold by the IRLP to the independent third parties, but only to IMPL, the wholesale price of IMPL charged to their wholesales dealers for such products, may be taken as the basis for arriving at the assessable value. iii) While arriving at the assessable value, discounts, freight excise duty, sales tax, other tax....