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TMI Blog1984 (12) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... tured by them are supplied on rate contract basis to DGS & D, New Delhi. The appellants quoted the prices of coolers of various models and also quoted price for extra water tank. The controversy in these proceedings arose from two show cause notices issued to the appellants. A show cause notice was issued on 6-9-74 demanding differential duty of ₹ 6,110/- relating to the clearances between April 1973 to March 1974. The second show cause notice was issued on 9-1-75 demanding differential duty of ₹ 8,808.90 from January 1972 to March 1973 and April 1974 to December 1974. The appellants contended that the prices quoted were accepted separately for the cooler and the extra water tank. In the initial stages while calculating the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal water tank cannot be treated as integral part of the cooler. He relied on the ruling reported in 1984 (15) E.L.T. 426 = 1984 ECR 541 (Vardhman Spinning & Weaving Mills Ltd., Ludhiana v. Collector of Customs, Bombay). In that case voltage stabilizer was not classified along with computer. Shri Kohli further argued that in respect of the identical goods another Appellate Collector has held on 18-5-82 that extra water tank was not an integral part or component of the cooler. The learned Consultant however stated that during the period when they inadvertently included the price of the water tank, they would be liable to pay the excise duty on the added value. He pleaded that the Appellate Collector has passed the orders more on conjectures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants on the declared prices of the coolers i.e. ₹ 1,259.20, ₹ 1,419.20 and ₹ 1,535.20. From the relevant Schedule to rate contract, we find that the cooler is valued at ₹ 1,229.20 and the water tank at ₹ 30/-. Even in regard to the excise duty, a sum of ₹ 314-80 calculated at 25% on ₹ 1,259.20 is stated to be the unit value of the stores as assessed by the Excise Authorities. In the amendment dated 4-5-1974 issued by the DGS&D the value of the unit and the water tank have been shown distinctly and the rate of excise duty is stated to be 40% ad valorem with effect from 1-3-74. The price of the water tank was included in the contract rates of DGS&D and excise duty was actually charged from the custom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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