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TMI Blog1986 (11) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... ry; and (ii) Mourigram Bonded Installation, both belonging to the appellants. A part of the production was stock transferred to Paharpur and Budge Budge filling stations after payment of duty. At these filling stations, the goods were packed in containers and sold to : (1) Directorate General of Supplies and Disposal in the appellants containers at Rate Contract Price which included the cost of the container; and (2) Non-Directorate General of Supplies and Disposal parties in customer s containers. The dispute before us relates to the goods sold as at (i) above. 3. The case of the department is that since all the four installations - Haldia Refinery, Mourigram Bonded warehouse, Paharpur Filling Station and Budge Budge Filling S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in Delhi Cloth General Mills Company Limited case [1977 E.L.T. (J.199)], reiterated in the more recent judgment of the Supreme Court in Empire Industries case [1985 (20) E.L.T. 179 (S.C.)], it cannot be said that any manufacture or production had taken place at Paharpur and Budge Budge. 5. Though actually no new goods emerged after the process, the law could yet provide for the process of filling or packing to be deemed as manufacture. Such deeming provisions exist in Section 2(f) of the Act but they applied to manufactured tobacco, patent or proprietary medicines and cosmetics. They do not apply to Mineral Turpentine Oil. The process of filling or packing of duty paid Mineral Turpentine Oil at Paharpur or Budge Budge cannot, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct read with Rules 9, 49, 157 and 173N of the Central Excise Rules, 1944, valuation and assessment has to take place at the time of removal of the goods from Haldia Refinery and Mourigram warehouse. The goods were already so valued and assessed to duty. From these two places, all clearances were in bulk, whether for sale or for stock transfer. Since Mineral Turpentine Oil was sold in bulk from Haldia Refinery and Mourigram warehouse, the normal price at which such goods are ordinarily sold was ascertainable at the gate of the factory/warehouse. So, the quantity stock transferred from these places in bulk to Paharpur and Budge Budge had also to be assessed .at the same normal price, vide Section 4(1)(a) of the Act. 8. Since the goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot possible to think of any other basis at which the stock transfer quantity should be assessed at Haldia Refinery and Mourigram warehouse. Indeed, at the time of bulk removal from these places, it would be impossible to know as to how much of the quantity would eventually be sold to D.G.S. D in appellants containers. 10. Since the law requires the bulk removals, whether for sale or for stock transfer, ex-Haldia Refinery and ex-Mourigram warehouse, to be valued and assessed to duty at the bulk sale price which was ascertainable and the appellants did declare such a price and, after approval by the department, assessed the goods accordingly, they were not guilty of any suppression or misdeclaration. The filling or packing activity on du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re removed; (d) (i) the depots at Paharpur and Budge Budge, obviously, are not warehouses or premises where the excisable goods were permitted to be deposited without payment of duty, in the facts and circumstances of the case. (ii) they cannot also qualify to be places of production or manufacture, unless packing, per se, is held to be manufacture , (iii) manufacture , in terms of S.2(f) of the Act, includes any process incidental or ancillary to the completion of the manufactured product, as well as, packing or re-packing from bulk in the case of some specified products only like manufactured tobacco or patent or proprietory medicines. The goods, in question, are not amongst those specified, (iv) it cannot be held that packin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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