1986 (10) TMI 38

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....regards the determination of the market value of the goods manufactured by the petitioner company for the purposes of computation of the excise duty leviable on the same. The petitioners (manufacturers) are manufacturing electrical goods under a contract with another company known as the Bajaj Electricals Ltd. (hereafter referred to as buyers). The agreement between the parties provides for the bu....

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....etitioner Company, which are accepted by the buyers and to which the brand name label 'Bajaj' is applied are sold by the manufacturers to the buyers at the stipulated price and to none-else. They are not at all sold in the open market by the manufacturers. The right to sell these goods with the brand name is solely and exclusively that of the buyers having regard to the fact that they alone are th....

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....goods, in the wholesale market at the factory gate manufactured by the manufacturers. It cannot be assessed on the basis of the market value obtained by the buyers who also add to the value of the manufactured goods the value of their own property in the goodwill of the 'brand name' -The Petitioners are therefore right and the respondents wrong. This point is covered by earlier decisions of this C....

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.... a case, the sale price fetched by sales effected by him under such brand name in wholesale will be the basis for computation of excise duty payable by him - So also nothing said herein will come to the rescue of a brand name owner who himself is the manufacturer of goods or to sales effected in favour of 'related' persons as defined by the Act The Bank guarantee, if any, furnished by the petition....