2002 (6) TMI 123

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....d for manufacture of supply of lubricating preparation on job work basis. M/s. Ultra Lubricants (India) Pvt. Limited were paying Central Excise duty on the finished products in accordance with the judgment of the Hon'ble Supreme Court in the case of Ujagar Prints Etc. Etc. v. Union of India & Others, reported in 1989 (39) E.L.T. 493 (S.C.). Show cause notices were issued to the appellants proposing M/s. Valvoline Cummins Ltd. resale price to its customers as the basis for arriving at the assessable value in respect of the goods manufactured by M/s. Ultra Lubricants (India) Pvt. Ltd. The differential duty from M/s. Ultra Lubricants (India) Pvt. Ltd. for the clearances made during the period from 2-9-1996 to November, 1999 were demanded and t....

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....ia Industries Ltd. under an agreement entered between M/s. Pawan Biscuit and M/s. BIL, similar to the present case before me. The raw materials were supplied by M/s. BIL and the appellants were converting the said raw materials into biscuits bearing brand name belonging to BIL. The appellants were responsible for compliance of the provisions of Central Excise Act and the rules made thereunder and were to maintain all accounts and records. The appellants were to be paid job work charges at fixed rate. Held that, in view of the nature of the agreement, the relationship between M/s. Pawan Biscuits (the appellant) and M/s. Britannia Biscuits can be termed as that of principal and agent and not on principal to principal basis. Hence price at whi....