2000 (6) TMI 58

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....ty is sold from various depots. Department took the view that the appellants were selling the goods at a higher price at the depot and were realising 7% to 18% more than the price fixed at the factory gate sales. Thereby, show cause notices were issued for re-fixing the normal value of the goods sold. This attempt of the department was opposed by the appellants. According to them, the excise duty should be leviable on the basis of the ex-factory price and that they are entitled to have expenses incurred for maintaining the depot deducted from the sale price for arriving at the assessable value. Adjudicating authority rejected these contentions and confirmed the demand. Appeal filed against the order of adjudication was dismissed. The matter....

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....age 9 of his order which reads "the distribution expenses and interest on inventory of finished goods at branches/depots should in fact be the part of the value at the factory gate, since these elements cannot be deducted under the provisions of section 4 ibid. Since the distribution expenses and interest on inventory of finished goods at branches/depots are initially borne out by the party and ultimately flows back from the buyers to the company against the sale of their goods, the same enriches the value of the products by not adding these elements at factory gate, party has deliberately lowered down their prices at factory gate, since they are having a very little sale i.e. less than 3% at factory gate". When goods are sold by a manufact....