Judgment

Sen, J.-The appellant, IDL Chemicals Limited, manufactures explosives at its factory at Sonaparbat. The raw materials for explosives are obtained from diverse sources. The finished goods are sold in the following manner :-

(i) Goods which are sold to customers like Coal India Limited.

(ii) Goods sold to public sector companies and Government undertakings.

(iii) Goods which are sold to ordinary customers who do not have long term contract.

(iv) Goods which are transferred from the factory premises to various magazines outside the State of Orissa which ultimately are sold to persons enumerated in categories (i), (ii) and (iii).

2. There is no dispute that the goods are sold to Coal India Limited and Government undertakings at a rate much lower than the rate charged for the goods sold to ordinary customers who do not have any long term contract with the appellant.

3. There is also no dispute that excise duty is paid at the factory gate on the basis of three different prices :-

(i) The price paid by Coal India Limited.

(ii) A little higher price paid by public sector compan