1997 (6) TMI 85

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..... aving been approved, appellant cleared motorcycles from time to time paying duty on the assessable value as declared in the price lists. Motorcycles were being transported from the factory gate to the premises of the dealers in special trucks built by the appellant with several deckers so that one truck can carry quite a large number of motorcycles. 2. Dispute in this case relates to the year 1983. On 14-10-1987 notice was issued to the appellant stating that the appellant had failed to declare the correct assessable value of the goods and pay correct duty of central excise and motorcycles had been cleared without payment of proper duty. The notice further alleged that scrutiny of private accounts maintained by the assessee and the writte .....

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..... Learned Consultant placed reliance on the decisions of the Supreme Court in Bombay Tyre International Ltd. - 1983 (14) E.L.T. 1896, MRF Ltd. - 1995 (77) E.L.T. 433 and 1989 (41) E.L.T. 376 for the proposition that when freight had been equalised the same cannot be part of assessable value. He also placed reliance on the decision of the Supreme Court in Indian Oxygen Ltd. - 1988 (36) E.L.T. 730 (S.C.), where the Court observed that the supply of cylinders (in the case of gas) was an activity ancillary to the manufacture of gas and any income either in the shape of interest on deposit received for the safe return of cylinders, or any rental charge would not be part of the price of manufactured goods and the same might be profit or gain of the .....

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..... ked, the assessee must have a case that the activity in question was regarded as an ancillary or allied profit making venture. If assessee has earned profit in a specific case the same should be considered in the light of the decision of Indian Oxygen Ltd. Where however the assessee has not put forward such a case, the principle would not be attracted. 6. The main contention urged by the learned Consultant on behalf of the appellant is that while the figures Rs. 1,65,31,604.98 and Rs. 1,13,14,381.20 are correct, the latter figure is not exhaustive of all the factors which contributed to the actual freight expenses. To illustrate, it was submitted by Shri Bedi that the cost of fuel and salary of drivers may have been taken into considerati .....

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