Judgment Case ID: 6074

Judgment:
vil Appeal No. 1491 (NN) of 1988. From the Judgment and Order dated 30.5. 1986 of the Delhi High Court in W. No. 578 of 1981. A. Subba Rao	 P. Parmeshwaran and Mrs. Sushma Suri for the Appellants. H.N. Salve	 P.K. Ram and D.N. Misra for the Respondent. 872 The Judgment of the Court was delivered by SABYASACHI MUKHARJI	 J. This is an appeal by special leave and is connected with Civil Appeal No. 859. This is an appeal from the judgment and order of the High Court of Delhi dated 30th May	 1986. It appears that in October	 1975	 Trade Notices were issued on the basis of the directive of the Ministry of Finance to the effect that the owners of the brand name are to be treated as the manufacturers of the goods. In April	 1977	 price list submitted by the respondent declaring the assessable value on the basis of the price at which the assessee respondent sold the goods. Thereafter on 16th April	 1977	 there was a letter written by respondent giving the list of the customers of the respondent and clarifying the terms and conditions on which the assessee sold the goods. On August 22	 1977	 the appellants wrote a letter to the assessee respondent seeking certain information	 intera lia	 to the effect whether the assessee and its buyers were related persons. A reply was given on 10th September	 1977 by the assessee to the aforesaid letter. First notice was issued asking the assessee to show cause as to why the assessable value be not determined at the price the buyers of the assessee sold the goods (instead of the price at which the assessee sold the goods to its buyers). There was a reply and the second show cause notice was issued on 28th January	 1981. These show cause notices were challenged and the High Court quashed the said notices. Aggrieved thereby	 this appeal has been filed. The respondent is a registered company carrying on the business of manufacturing and selling filters. Some of the goods are sold by the respondent to its customers under the respective brand names. The respondent filed a price list at which price the goods were sold to the customers. In view of the principles indicated in the judgment in Civil Appeal No. 859 and the facts adduced before the High Court	 the High Court 's judgment cannot be interfered. The appeal	 therefore	 fails and is accordingly dismissed. T.N.A. Appeal dismissed.

Summary:
The respondent company	 manufacturer of filters	 was selling the goods to its customers under brand names. It declared its assessable value on the basis of the price at which it sold the goods. Show Cause Notices	 requiring assessable value to he determined at the price the buyers of the respondent company sold the goods	 issued to the re spondent were challenged by it and quashed by the High Court. Hence this appeal by the Revenue. Dismissing the appeal	 this Court HELD: 1. For the purposes of the excise duty	 the market value of the goods of the respondent company was the price charged by it	 and not the market value at which the buyers of the respondent company sold the goods. The High Court	 therefore	 rightly quashed the Show Cause Notices. [872C] The Union of India & Ors. vs M/s Playworld Electronics Pvt. Ltd. & Anr.	 Civil Appeal No. 859 of 1988 (S.C.) decid ed on 2nd May	 1989	 applied.