Per Gowri Shankar :

The appeal has been taken up for disposal with the consent of both sides after waiving deposit.

2. The appellant manufacture, inter alia a brand of soap named 'Cinthol Fresh'. M/s. Marico Industries (Marico for short) is a manufacturer of coconut oil sold under the brand name Parachute. This manufacturer decided to supply free of charge along each bottle of Parachute oil sold, a cake of Cinthol Fresh soap. For this purpose, it purchased from the appellant 1,084 MT of the soap. The order was placed on 13.11.97 for supply of the entire quantity before end of January 1998.

3. The appellant filed for goods to be cleared a declaration of price in which it claimed as the assessable value Rs. 582/- for 15 kgs. of soap. The department found that the assessable value declared by the appellant for sales to its dealers varied depending upon the location of the dealer between Rs. 1210.46 and 1083.49. Enquiries with the appellant as to the justification for the lower price to Marico having denied any response. Notice was issued proposing enhancement of the assessable value based on as 126.46 for 15 kg. and proposing penalty under Section 11AC of the Act. In its reply to th