1990 (4) TMI 179 - AT - Central Excise

Summary

The appellants manufacture pre-stressed concrete pipes and entered into a contract with the Orissa Government. The cost of manufacture and profit works out at 87% of the contract price, while transportation, laying, jointing, testing, and maintenance costs work out to 13%. The Collector's decision that sale only occurs when the pipe line is complete for one year is not based on any principle. The manufacturing cost is complete when goods are removed from the factory, and the price at that point is the assessable value. The costs for laying, jointing, testing, and maintenance are post-manufacturing activities and should not be included in the assessable value. The order of the Collector is set aside, and the case is remanded for reassessment.