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TMI Blog1976 (12) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... th effect from 1968, the petitioner used to submit price lists to the respondents from time to time as required under Rule 178(c) of the Central Excise Rules, 1944. Such lists detailed the prices for sales from the factory to distributors from distributors to wholesale dealers, from wholesale dealers to retailers and upto point of time of sale to consumers. For the purpose of Section 4 of the Central Excises and Salt Act, 1944, the prices charged by the distributors to wholesale dealers were taken to be the value for assessment purpose. 2. It appears that as a result of Supreme Court decision in A.K. Roy v. Voltas Ltd. (A.I.R. 1973 S.C. 225), the petitioner took the stand from 1-3-1973, onwards, that the prices charged by them for sale t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd quality is sold or is capable of being sold at the time of the removal of the article chargeable with duty from the factory or any other premises of manufacture or production for delivery at the place of manufacturing or production, or if a wholesale market does not exist for such article at such place, at the nearest place where such market exists, or (b) where such price is not ascertainable, the price at which an article of the like, kind and quality is sold or is capable of being sold by the manufacturer or producer or his agent, at the time of the removal of the article chargeable with duty from such factory or other premises for delivery at the place of manufacture or production or if such is not sold or is not capable of being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 to 11 of 1975 (Union of India v. I T.C. Ltd.) following the decision in Volta s case said that - It is thus clear that the wholesale price must be determined on the basis of cash payment representing only manufacturing cost and manufacturing profit but excluding the selling costs and selling profit and that price has to be fixed for delivery at the factory gate. Some of the items to be excluded are the interest involved in the wholesale price when a credits is allowed to the wholesale buyer for a period of tie, freight, octroi and other charges involved in the transport of the articles. 7. We are in respectful agreement with the view taken by Karnataka High Court. Similar view has been taken by the Maharashtra High Court in Writ A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s case is a latter decision and it has narrowed down the principles enumerated in Voltas s case. He has urged that there is a conflict in two decisions and we should follow the principles laid down in Atic s case. The Voltas s case (supra) according to him, should be confirmed to the facts of the case. In support of his argument he has placed reliance on Regional Manager v. P.K. Dubey, 1976, 3 SCC 334; A.I.R. 1976 SC 1766) and M.K. Sabha v. M/s. Abdulbhai Faizullabhai (1976 3 SCC 832); (A.l.R. 1976 SC 1455). We are unable to appreciate the relevance of these two decisions. lt is difficult to agree with the submission of the learned Senior Standing Counsel that there is a conflict between two Supreme Court decisions. As a matter of fact the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in Voltas case and Atics case, such expenses should be regarded as post manufacturing expenses. 12. The Central Excise authorities have not applied their mind and examined whether expenses incurred and claimed by the petitioner or part thereof were post manufacturing expenses. If the sale price charged by a manufacturer or producer consists of only manufacturing costs or manufacturing profit, no exception can be taken; but if it includes expenses incurred on freight, advertisement, distribution interest, or such other items as can be put in the category of post manufacturing expenditure, he is certainly entitled to claim deduction of the same while determining the wholesale cash price for the levy of excise duty under Section 4 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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