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TMI Blog1995 (8) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... as chargeable to central excise duty with reference to value. They filed their price list in proforma Part-I under Section 4(1)(a) of the Central Excises and Salt Act, 1944 (hereinafter referred to as the `Act ) - main definition case applicable in respect of excisable goods for sale by the assessee to buyers (not being related persons) in the course of wholesale trade. From the declared value, they claimed deduction at the rate of Rs. 2.68 per crate, said to be post-manufacturing expenses. A show cause notice dated 1-5-1981 was issued to them. The deduction was subsequently raised to Rs. 3/- per crate. The matter was adjudicated by the Asstt. Collector, Central Excise, Agra, who under his order dated 26-2-1983 rejected the deductions claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it had been held that the delivery charges for goods, and charges for collection of empty cylinders, were excludible. The learned Advocate also referred to the following decisions in support of his case :- (1) Collector of Central Excise, Indore v. Premier Oxygen and Acetylene Co. Pvt. Ltd., Gwalior - 1985 (22) E.L.T. 61 (Tribunal). (2) K. Radha Krishaiah v. Inspector of Central Excise, Gooty others - 1987 (27) E.L.T. 598 (S.C.). (3) Govind POY Oxygen Ltd. v. Collector of Central Excise, Goa - 1988 (34) E.L.T. 725 (Tribunal). (4) AIMS Oxygen Pvt. Ltd., Baroda v. Collector of Central Excise, Baroda - 1988 (36) E.L.T. 151 (Tribunal). (5) Collector of Central Excise v. Indian Oxygen Ltd. - 1988 (36) E.L.T. 730 (S.C.). (6) Collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellants was that duty can be levied only on manufacturing cost and manufacturing profit (refer page 21 of the paper book). This contention has been categorically repulsed by the Hon ble Supreme Court in their historic judgment in the case of Bombay Tyre International Ltd. (refer paras 13, 22, 33, and 40 of the judgment). Before the Collector of Central Excise (Appeals), the appellants conceded that in view of the Supreme Court s decision in the case of Bombay Tyre International Ltd., their claim in respect of (i) salaries, wages, allowances etc., of sales staff (ii) conveyance and travelling allowances of sales staff (iii) maintenance and petrol expenses of sales staff s vehicles (iv) miscellaneous expenses incurred for sales De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akage and damage of the containers which are of a durable nature, and returnable to the manufacturer. The expenses inourred on them as stated above is not liable to be included in the assessable value in terms of Section 4(4)(d) of the Central Excises Salt Act. This charge represents breakage subsequent to clearance of the excisable goods while in transit from the factory to the premises of the wholesale dealers and then return from the dealer s premises to the factory for fresh supplies. A Certificate showing the actual figures of loss incurred as due to transit breakage after deducting the loss due to breakage in the manufacturing premises for the calendar year 1981 from our Chartered Accountant is appended for perusal. 5. Rent on con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntered the stream of trade, excise was not concerned with what happens subsequently to the goods or the containers. If the aerated water bottle, filled or un-filled, is broken before the manufacture, it is not subjected to the levy of excise. It the bottle is broken after it has entered the stream of trade and is on its outward journey to the wholesale buyer, excise is not concerned with it. 11. The Hon ble Supreme Court had held in the case of Bombay Tyre International Ltd., that even the interest on inventories (stocks carried by the manufacturer after clearance) could not be deducted from the value. The appellants claim with regard to interest lost on the differential between the cost of containers and the deposit amount taken from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the filled cylinders and collection of the empty cylinders. In the present case, repairing of the wooden crates (which is not a packing for aerated waters) and compensation on loss of interests on containers are concerned. We do not find any relevancy of the India Oxygen Ltd. case to the present proceedings. The Hon ble Supreme Court had observed that as there was an ascertainable ex-factory price, it should be the basis upon which the value was to be determined. In that case, some of the sales were from depots/service centres. The Supreme Court held that if the ex-factory price is not ascertainable and goods are to be assessed ex-depot, then it is for the manufacturer to claim on the basis of actual evidence, of the admissible deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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