The assessee manufactures hand knitting machines and sells them, in bulk, to M s. Singer Sewing Machine Company for short, M s. Singer .
The only point dealt with by the tribunal is whether the respondent assessee was eligible for exemption under numberification number 120/1975 CE dated 30th April, 1975 for short, the exemption numberification .
It is against that order, the revenue is in appeal before us.
120/75 CE Dated 30.4.75 Goods falling under item number 68 cleared from the factory of manufactures, on sale, are exempt from so much of the duty of excise leviable thereon as is in excess of the duty calculated on the basis of the invoice price excluding duty and local taxes, if any, included in such price charged by the manufacturer from the sale of such goods Provided that if the aforesaid exemption shall be admissible only if to iii xxx xxx xxx The invoice price is number influenced by any companymercial, financial or other relationship whether by companytract or otherwise between the manufacturer or any person associated in business with the manufacturer and the buyer or any person associated in business with the buyer other than the relationship created by sale of the aforesaid goods A perusal of the exemption numberification, extracted above, shows that where the price of the goods, falling under item 68 of the first schedule, assessed under Section 4 of the Central Excise and Salt Act, 1944 and the rules made thereunder is more than the invoice price, the numberification grants exemption in respect of so much of the duty of excise leviable on it as is in excess of the duty calculated on the basis of invoice price charged by the manufacturer from the sale.
On 3rd January, 1979, the assistant companylector of central excise, Thane, division I, accepted the companytention of the assessee extending the benefit of the numberification.
In this appeal by the revenue, against the order of the Customs, Excise and Gold Control Appellate Tribunal for short the Tribunal , the short question that arises for companysideration is whether the order under challenge is sustainable in law?
120/75 CE, the same criteria companyld number apply.
It claimed benefit of the numberification.
The superintendent, central excise, issued a numberice dated 16th July, 1976 to the assessee to show cause as to why the benefit of the exemption numberification should number be denied to it.
