9911796707
TMI Blog1988 (11) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... turing Red lead, white lead and Zinc Oxide falling under Tariff Item 14 and lead sub-oxide and litharge falling under Tariff Item 68 of Central Excise Tariff. The appellants sell their products in the course of wholesale trade from their sales office/depots situated at Calcutta, Delhi, Bangalore and Kanpur. The prices charged by the appellants from their customers include, inter alia, the price of the goods, the cost of transportation from the factory gate to the depots and from the depots to the customers' place, transit insurance, octroi and taxes and duties including local taxes etc. The appellants originally submitted two price lists in Part-I dated 18-7-79 effective from 20-7-79 showing different prices for different zones and after cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase tax, octroi duty etc. As per the above said judgment, statements of their sales from Delhi, Kanpur and Bangalore depot were also furnished. The Superintendent of Central Excise issued a Show Cause Notice dated 7-1-85 asking the appellants to show cause as to why their claims on account of trade discount, freight, octroi, turnover tax, purchase tax, etc. should not be disallowed. A reply to the Show Cause Notice was submitted. The Assistant Collector of Central Excise, Khardah determined and approved the assessable value of the respective items of products falling under Tariff Item 68 and Tariff Item 14 in revised price lists effective from 20-7-79 to 14-5-80, vide his order dated 7-6-85. Being aggrieved from the order passed by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es after the factory gate and the appellants want a finding in this regard. For Zinc Oxide and lead oxide the turnover tax has been challenged by the appellants which is pending in the court of law. He has stated that unloading charges have to be allowed and the purchase tax in the present matter is the tax on sale of finished goods which are sold outside the West Bengal State vide West Bengal Taxation Act, 1979. He has pleaded that the same should be allowed. He has referred to a Tribunal judgment in the case of Castrol reported in 1987 (12) ECR 321 = 1987 (29) E.L.T. 585 (Tri.). Shri Aggarwal has pleaded for the acceptance of the appeal. 4. Shri V.M. Doiphode, the learned SDR who has appeared on behalf of the respondents states that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue has to be given in view of the finding given in para No. 49 and 50 of the Bombay Tyres International Ltd.'s case. The Hon'ble Supreme Court had observed that "In cases, where the goods are sold by the assessee in the course of wholesale trade at a place or places outside the factory gate, the assessee will be entitled to a deduction on account of cost of transportation of the excisable article from the factory gate of the place or places where it is sold. The cost of transportation will include the cost of insurance on the freight even where such freight is charged on average basis so that the wholesale cash price from any place or places outside the factory gate is the same as the wholesale cash price has to be deducted in order to arr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible from the assessable value. We remand the matter to the Assistant Collector with the directions that he should allow the necessary deductions on account of cost of transportation and delivery, turnover tax and Octroi duty in view of these judgments. We further direct that the Assistant Collector will grant an opportunity for personal hearing. The appellants will have to furnish within three months the necessary information of expenses actually incurred for the relevant period for getting these deductions. The appellants stated that in respect of loading and unloading charges paid to coolies beyond the factory gate and conveyance charges paid for local deliveries, they did not have receipts from payees but they had their own vouchers. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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