1998 (12) TMI 431 - AT - Central Excise

Summary

Issues Involved:
1. Claim for deduction on account of Central Excise duty for valuation of footwear under Notification Nos. 171/67-C.E. and 49/86-C.E.
2. Allowability of expenses like maintenance, interest on inventories, and insurance from All India Uniform Wholesale Prices for assessable value determination.

Analysis:

Issue 1 - Claim for Deduction on Account of Central Excise Duty:
The appellants sought the benefit of Notification Nos. 171/67-C.E. and 49/86-C.E. for valuation of footwear. However, the Tribunal noted that a previous order had already denied this benefit to the appellants based on a Supreme Court judgment. The Tribunal upheld the denial, stating that the appellants' plea was not sustainable. Additionally, the Tribunal allowed Modvat credit re-quantification for inputs used in manufacturing, subject to the reversal of the credit by the appellants.

Issue 2 - Allowability of Expenses for Assessable Value:
a. Maintenance Expenses: The Tribunal ruled against the appellants on deducting expenses for depot maintenance and distribution, citing a Supreme Court judgment.
b. Interest on Inventories: The Tribunal disallowed the deduction for interest on inventories based on the Supreme Court's decision in a specific case.
c. Insurance Expenses: The appellants claimed deduction for insurance of goods at depots, arguing it should be covered under 'transit insurance.' The Tribunal noted conflicting views between the parties regarding the scope of transit insurance and its coverage. Since the Supreme Court's judgment cited was not considered by the adjudicating authority, the Tribunal remanded the case for a fresh decision on insurance expenses to align with the Supreme Court's ruling in the MRF case.

In conclusion, the Tribunal dismissed the appellants' claims for deductions based on previous judgments and allowed re-quantification of Modvat credit. The decision on insurance expenses was remanded for further consideration in light of the Supreme Court's judgment, ensuring a comprehensive review of the issue.