1996 (10) TMI 110 - SC - Central Excise

Summary

Issues involved:
1. Determination of excise duty value for ball bearings manufactured by the assessee.
2. Assessment of post-manufacturing expenses including wooden crates and transit insurance.

Issue 1 - Excise Duty Value for Ball Bearings:
The first issue in the appeals pertained to the excise duty value of ball bearings manufactured by the assessee. The assessee contended that certain components like snap rings, sleeve lock devices, etc., were accessories and not integral to the ball bearings. However, the Revenue argued that the duty liability should be based on the composite value of the ball bearings along with these accessories, as they were fitted to the bearings when cleared from the factory. The Tribunal supported the Revenue's stance citing that the entire article was cleared as ball bearings, with no separate pricing for accessories. The Tariff Entry in question specifically referred to "Rolling bearings, that is to say, ball or roller bearings," indicating that only the bearings themselves fell under this category, not the additional accessories. Consequently, the Tribunal's decision on this issue was overturned.

Issue 2 - Post-Manufacturing Expenses:
The second issue revolved around post-manufacturing expenses, particularly the use of wooden crates for safe transportation and transit insurance. Referring to a previous judgment, the matter was deemed necessary for reassessment by the Assistant Commissioner of Central Excise, Ranchi, to determine the allowable expenses in accordance with the aforementioned precedent. As a result, the appeals were allowed, with no costs imposed.

*[Separate Judgment by S.P. Bharucha and S.C. Sen, JJ.]*