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TMI Blog1984 (11) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of consignments of properzi rods made by them on behalf of the various customers formed part of the value of the goods for assessment purposes. 3. Briefly the facts of the case are that the appellants during the relevant period (9-11-1972 to 31-7-1975) were manufacturing Aluminium wire rod;. They got duty paid EC grade Aluminium ingots from the producing factories on account of various customers for manufacture of wire rods on job basis. In some cases for delivery of such rods to customers, the appellants charged what has been described as delivery and handling charges. The lower authorities observed that the appellants were paying duty on such rods with reference to the prices fixed under the Aluminium (Control) Order, 1970 (he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is from 9-11-1972 to 31-7-1975. During the entire period, the price of the goods in question was regulated by the provisions of the Order. He explained that the Order which came into force w.e.f. 20-3-1970 stipulated that the sale price would be exclusive of excise duty and also exclusive of transportation charges. The said Order was amended vide Order dated 24-5-1971 whereby Clause 2(f) was amended providing that the sale price would be inclusive of duties of excise but exclusive of transport charges or insurance charges etc. The said Order was again amended w.e.f. 11-3-1975 and again the sale price was made exclusive of excise duty and exclusive of transportation charges. As the period in dispute covers 9-11-1972 to 10-3-1975 the compos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue and, therefore, there was no justification even for loading the assessable value of the goods by handling charges even for the period 11-3-1975 to 31-7-1975. Shri Lachman Dev pointed out that one coil of properzi rod weighed approximately 2 MT and labour had to be engaged to load the same to the lorries or railway wagons to dispatch the same to the customers. Such loading of rods into the lorries or railway wagons was the responsibility of the buyers but this job was done by the appellants on behalf of the customers. In some cases, such arrangements were made by customers themselves. It was contended that the appellants were responsible under the Law to pay duty without the addition of these handling charges as these were incurred on b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Board of Excise and Customs and its subordinate field formations. In any event, instructions contained in the said letter could not be called to aid by the appellants as these were in conflict with the provisions of the statute. Shri Jain, therefore, submitted that the lower authorities were well within their legal rights to add the cost of such charges for arriving at the assessable value of the goods and that the appeal deserved to be rejected. 6. We have heard both sides. It is not in dispute that between 9-11-1972 and 10-3-1973, the controlled price of the properzi rods, in terms of the Aluminium (Control) Order, 1970, was inclusive of excise duty. In terms of the Explanation to the unamended Section 4 of the Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n us, for, in the words of the Supreme Court in 1983 E.L.T. 1896 = 1983 ECR 1627 (Union of India v. Bombay Tyre International etc.), "26. Accordingly, we hold that pursuant to the old S. 4(a), the value of an excisable article for the purpose of excise levy should be taken to be the price at which the excisable article is sold by the assessee at the time and place of removal...... 27. Where the excisable article is not sold in wholesale at the place of removal, that is, at the factory gate, but is sold in the wholesale trade at a place outside the factory gate, the value should be determined as the price at which the excisable article is sold at such place, after deducting therefrom the cost of transportation of the excisable article from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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