1980 (12) TMI 58 - CGOVT - Central Excise

Summary

Issues:
1. Whether the base price of aluminum slugs adopted for computing the cost of extruded shapes is correct.
2. Whether the price of slugs should be reduced by the duty paid on them for computing the cost of extruded shapes and sections.

Detailed Analysis:
1. The applicants, a unit of a company, filed a price list for torch bodies manufactured from aluminum slugs, initially anticipating a price rise which did not materialize. They subsequently filed a revised price list reducing the cost of torch bodies based on the reduced price of slugs. The authorities approved a lesser reduction in slug prices than claimed by the applicants. The Appellate Collector upheld this decision, emphasizing the need to determine product prices based on actual values inclusive of excise duty. The applicants argued that duty paid on slugs should not be included in manufacturing costs. The Government upheld the authorities' decision, stating that actual raw material prices should be considered for cost computation, rejecting the notion of using control period prices.

2. The applicants contended that duty paid on slugs, for which proforma credit was taken, should not be part of the cost calculation for extruded shapes. The Government agreed, noting that when determining the assessable value of finished products, credit for duty paid materials should be deducted. Therefore, the revision application was allowed on this point, and the decision was disposed of accordingly.