Final Order No. 203/97-A arising from in Appeal No. E/2359/88-A with E/Cross/421/88-A. Case: Collector of Central Excise, Bombay Vs Parekh Dye Chem (P) Ltd.. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)

Case NumberFinal Order No. 203/97-A arising from in Appeal No. E/2359/88-A with E/Cross/421/88-A
CounselFor Appellant: Shri M. Ali, JDR and For Respondents: Shri Prashant Bhushan, Advocate.
JudgesU.L. Bhat, President and Shri K. Sankararaman, Member (T)
IssueCentral Excise Act, 1944 - Sections 4(1)(a), 4(4)(c)
Judgement DateFebruary 03, 1997
CourtCEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)

Order:

U.L. Bhat, President, (New Delhi)

  1. Respondent, engaged in the manufacture of Polyvinyl Acetate Dispersion, was filing price list from time to time and clearing goods on payment of duty on the price approved by the Department. The dispute in this appeal relates to the period 1-10-1976 (sic) to 30-6-1977. Department issued two show cause notices to the respondent alleging that bulk discount was being given to another concern by name Pidilite Industries. The said discount is not admissible since the two are sister concerns and are "related persons". Notices proposed demand of duty on the amount covered by the discount alleging that such amount should have been added to the assessable value for the purpose of reckoning and paying duty. Respondent resisted the notices admitting that the respondent has five directors who are also directors of M/s. Pidilite Industries but contending that on that account two concerns cannot be regarded as "related persons" and even if it be so, there was no justification to disallow the discount since price charged to the sister concern even after discount was higher than the price which other manufacturers charged to their buyers. Adjudicating authority upheld both these contentions and dropped the proceedings. His order was confirmed by Collector (Appeals). Being aggrieved by this order, Collector of Central Excise, Bombay has preferred the present appeal.

  2. Only...

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