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5. The Preventive and Intelligence Branch of the Kurla Division
sometime in the year 1997-98 had conducted investigation into
the affairs of the respondents, whereby it was found that the
respondents were importing all the kits in CKD/SKD condition for
manufacturing the cars and the cost of production of a single car
was Rs. 3,98,585/- for manufacture from SKD condition and Rs.
3,80,883/- for manufacture from CKD condition against the
assessable value of Rs. 1,85,400/-. In the investigation, it was
also revealed that the respondents had entered into a spin-off
agreement vide Deed of Assignment dated 30-3-1998, whereby
M/s. Fiat India Ltd. would be liable for any excise liability
29 E/87501/2017,86049/2018,85181/2019
accruing from 29-9-1997 onwards, in respect of the cars in
issue.