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TMI Blog1973 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... tomers. If the customers take the bottles at the factory premises they are not charged with any freight charges. But if the bottles are delivered at the customer's doors, then Rs. 2/- per case of 24 bottles was charged extra as freight charges. The respondent said that the said charges should also be included within the whole sale cash price for the purpose of levy of excise duty, which the company resisted. 3. The Superintendent of Excise, fixed the assessable value of the goods accordingly and levied the excise duty inclusive of freight charges. The company preferred an appeal to the Deputy Collector of Central Excise. - (1) that the freight and transport charges cannot be excluded in determining the wholesale cash price of the articl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actured articles at the place of manufacture. The Deputy Collector has stated that having regard to the 20% of the articles being sold therein, it cannot be said that the wholesale market exists at the factory premises. He was of the opinion that there should be a habitual sale of articles by the manufacturer to anybody who wishes to make purchases or sales. In my opinion, the view taken by the Deputy Collector was clearly erroneous. 7. In A.R. Roy v. Voltas Ltd. [1977 E.L.T. (J.177)] while considering the concept of wholesale market under Section 4 (a) of the Act, this is what was observed therein; "Even if it is assumed that the latter part of Section 4 (a) proceeds on the assumption that the former part will apply only if there is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was observed : "Section 4 of the Act therefore provided that the real value should be found after deducting the selling cost and selling profits and that the real value can include only the manufacturing cost and the manufacturing profit. The action makes it clear that excise is levied only on the amount representing the manufacturing cost plus the manufacturing profit and excludes post-manufacturing cost and the profit arising from post-manufacturing operation, namely, selling profit. The section postulates that the wholesale price should be taken on the basis of cash payment thus eliminating the interest involved in wholesale price which gives credit to the wholesale buyer for a period of time and that the price has to be fixed for d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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