Customs, Excise and Gold Tribunal - Delhi
Commissioner Of C. Ex. vs Bharat Aluminium Co. Ltd. on 4 July, 2003
Equivalent citations: 2003(162)ELT351(TRI-DEL)
ORDER C.N.B. Nair, Member (T)
1. The dispute raised in the present appeal is whether sales from depots and consignment agents' premises are required to be treated as sales to different classes of buyers, as distinguished from sale on ex-factory basis. The appeal of the Revenue contends that the sales from depots and consignment agents' premises should be treated as sales to different classes of buyers than sales from factory gate. Reliance is placed on the decision of this Tribunal in the case of Collector of Central Excise, Chandigarh v. Taparia Tools Ltd. reported in 2001 (131) E.L.T. 306 (LB) and the decision of the Supreme Court in the case of Govt. of India v. Madras Rubber Factory reported in 1995 (77) E.L.T. 433 (S.C.).
2. In the impugned order, the Commissioner held that 70% of the goods were sold on ex-factory basis and the remaining goods were removed to depots and consignment agents' premises for sale. In view of this, he held that the entire goods were required to be assessed based on the ex-factory sale price as that sale price constituted the normal price of the goods.
3. During the hearing of the case, ld. Counsel for the appellants has pointed out that the present appeal is contrary to the clarifications issued by the Board in its Circular No. 3/90-CX. 1, dated 25-1-1990, wherein the Board clarified as under :-
"4. The Board also felt that in the case of regional sales depots, there was only a transfer of goods and there was no question of sales as such, these regional sales depots could not be treated as different classes of buyers. It was felt that factory gate price could apply provided it is a genuine price.
5. Accordingly, it has been decided by the Board that the wholesale dealers in India cannot be considered as belonging to different classes simply because they are located in different places.
6. Similarly in case of transfer of goods to regional sales depots, factory gate price will apply provided it is a genuine price."
4. A perusal of the records shows that the present case is not a case of sale of goods at different prices to different classes of buyers. The assessee had no case that buyers who purchased the goods on ex-factory basis and buyers who purchased from depots constituted different classes of buyers or that prices varied depending upon the class of buyer. Our decision in the Taparia Tools case is no authority to hold that sales from depots should be held as sales to a different class of buyers than sales at factory gate. The appeal is also contrary to the clarification contained in Circular No. 3/90-CX. 1, dated 25-1-90. The appeal is not maintainable. It fails and is dismissed.