M.N. CHANDURKAR, C.J

The only question which arises in this appeal is whether the Excise authorities were justified in rejecting the price at which the appellant manufacturer sold its products to Messrs Philips India Ltd. as the wholesale cash price.

2.Admittedly, we are concerned in this appeal with the sales of electric appliances, namely, water heaters manufactured by the appellant during the period 1-3-1969 to 14-11-1969. 90 per cent of the production was sold to Messrs Philips India Ltd. at the rate of Rs. 265, Rs. 308 and Rs. 348, for water heaters having a capacity of 25, 35 and 45 litres respectively. The remaining 10 per cent of the production was sold to retailers at the rate of Rs. 340-45, Rs. 394-36 and Rs. 444-36. At one stage, the first respondent had approved the price list at the rates at which goods were sold to the retailers. However, the Deputy Collector later on by order dated 3-1-1970 changed these rates to Rs. 386-75, Rs. 446-25 and Rs. 501-50. The manufacturer-appellant had already appealed against the wholesale cash price being fixed at Rs. 340-45, Rs. 394-36 and Rs. 444-36. It also changed the wholesale prices later on fixed on 3-1-1970.

3.The only