I.J. Rao, Member (T)

1. The question to be decided in all these appeals relates to valuation. The basic facts are that M/s. Fenner (I) Ltd. (Fenner for short) manufacture, among other things V-belts. They sold some of the V-belts at the factory gate paying duty on the basis of approved price list and the remaining belts they sold through their depots. At these depots they sell not only V-belts manufactured by them in their Madurai Factory but also V-belt's manufactured by BMF Beltings Ltd., Hyderabad (BMF for short) a sister concern of theirs. By two separate orders impugned before us the Department wanted to revise the assessable value of the V-belts sold to the sales depots (having been manufactured by the two Units). Inter-alia, some penalties were also imposed and differential duties demanded. Hence these appeals before us.

2. We heard Shri V. Lakshmikumaran, the learned Advocate for the appellants and Shri L. P. Asthana, Jt. CDR for the respondent Collector.

3. The facts in the present matter are that the show cause notice alleged that the sales from the depots were not retail in character as made out by Fenner India Ltd. but were wholesale in nature. The show cause notice,