Judgment

SABYASACHI MUKHARJI, J.:- These are appeals under Section 35L(b) of the Central Excises and Salt Act, 1944 (hereinafter called the Act). The respondents - T. I. Millers Ltd. and T. I. Diamond Chain manufacture cycle lamps and automotive chains. Both these goods are assessable under Item 68 of the Central Excise Tariff. The said respondents filed price lists for the sale of the goods through their distributors, namely, M/s. T. I. and M-Sales Ltd., M/s. Charmvel Agencies and M/s. Ambadi Enterprises Pvt. Ltd. quoting their price to the distributor as assessable value. However, subsequently following the decision of the Madras High Court in a valuation case, the respondents required that the price charged by them from buyers at the factory gate should be accepted as the assessable value and not the price to the distributors. The question is whether the price charged by the respondents from buyers at the factory gate should be accepted as the assessable value for the levy of duty under Seetion3 of the Act. The Assistant Collector found from the sales pattern of the respondents that the distributors were related persons as per Section 4 of the Act and the price at which the distr