- (1.) The short question that arises for consideration is as to what is the wholesale price, on which the excise duty is payable, of the fabrics which are manufactured by the appellant Company?
(2.) The appellant was manufacturing fabrics which were being sold to four wholesale dealers who were M/s Shiv Narain Amar Nath, M/s hindustan Traders, M/s Anand Textiles and M/s Narain Das Sajan Lal. These four parties in turn delivered the goods taken from the appellant to m/s Agarcon (India) Ltd. , Kanpur. M/s Agarcon (India) Ltd. then sold the said fabrics to other wholesale dealers.
(3.) The Collector of Excise decided that the value, for the purpose of excise duty, of the goods should be the price which was charged by the appellant from the said four parties. The proposal to adopt the sale price of m/s Agarcon (India) Ltd. , as being the wholesale price for the purpose of excise duty, was dropped by the Collector by his order dated 27/2/1986.;