Dr. AR. LAKSHMANAN, J. - (1.) This appeal is preferred against the Final Order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi dated 22-6-1999 in Final Order No. 879/99-A in Appeal No. E/1225/95-A holding that the appellants are liable to pay excise duty on the basis of the sale price of the buyer to its dealers in Uttar Pradesh and not based on the appellants sale price to independent dealers.
(2.) The appellant is a company manufacturing detergent powder and allied products in its factory near Ghaziabad in the State of Uttar Pradesh. The appellant sells its goods from the factory to dealers spread throughout the country other than Uttar Pradesh at a particular price. It has paid excise duty for these sales on this price. No dispute has been raised by the Excise Department in respect of these sales.
(3.) The appellants also sold the goods in the State of Uttar Pradesh to a company called Syndet and Chemical Industries Ltd. (for short Syndet) at a price which was lower. Syndet, in turn, sold the goods to its dealers in Uttar Pradesh at a price which was higher than the price at which the appellants sold the product outside Uttar Pradesh. Roughly 35% of the goods are sold to independent dealers and 65% of the goods are sold to Syndet by the appellants. Syndet is also the owner of trademark "Fena" for detergent powder and allied products. According to the appellants, they have paid excise duty for sales made to Syndet also at the price charged by the appellants from the independent dealers situated all over the country, other than in Uttar Pradesh, since according to the Department, the appellants (SACI Allied Products Pvt. Ltd.) and buyer Syndet are related persons as per Section 4(4)(c) of the Central Excises and Salt Act, 1944 (hereinafter referred to as "the Act").;