9911796707
TMI Blog1994 (9) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... the products consumed were not being sold, the appellants filed a price list on the basis of cost of raw material + manufacturing expenses + manufacturing profit. According to the Department the excise duty paid on the raw material should be included in the assessable value and accordingly a show cause notice was issued. The Assistant Collector adjudicated the matter and held that the appellants should have included the excise duty paid on the raw materials for which Modvat Credit was availed by them in their assessable value and demanded differential duty. This view was upheld by the Collector (Appeals). 3. We have heard Shri L.B. Attar, learned Advocate for the appellants and the Department was duly represented by Shri A.K. Singhal, le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as precisely considered by the Tribunal in the case of Collector of Central Excise v. Khaitan Fans (P) Ltd. [1986 (26) E.L.T. 321] holding that Sales-Tax or Purchase-Tax paid on raw materials becomes part of the price paid for the raw materials and enters into manufacturing cost and therefore they are includible in the assessable value of the finished product and this was confirmed by the Supreme Court. He also referred to the following decisions in support of his contention. 1. Kamala Mills Ltd. v. Union of India - 1988 (34) E.L.T. 539. 2. Prabhat Associates v. Collector of Central Excise - 1985 (22) E.L.T. 465. 3. Sri Srinivasan Foundry v. Collector of C. Excise - 1987 (29) E.L.T. 644. It was contended by the learned DR that decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not with reference to Modvat Credit and decision in the case of Atic Industries (Supra) is squarely applicable to this case. 7. On a careful consideration of the submissions made by both sides with reference to the facts and the case law cited by both sides, we find there is some force in the arguments advanced by the learned DR that decision in the case of Atic Industries Ltd. [1992 (62) E.L.T. 321] is in conflict with the earlier decisions of the Tribunal. Furthermore both sides heavily relied upon the decision of the Tribunal in the case of Incab Industries (Supra) in support of their respective contentions. Since Incab Industries was very much referred to in the Atic Industries Ltd. while deciding the issue, it is to be clarified wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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