9911796707
TMI Blog1976 (2) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... Company Private Limited. It is a company which manufactures rubber products. The petitioner in W.P. No. 1957 of 1974 sells its goods to wholesalers in Bangalore as well as other places. Similarly the petitioner in W. P. No. 1292 of 1973 has got its Branch Offices at several places where the goods manufactured by it are sold to wholesalers. Until the decision of the Supreme Court in A K. Roy v. Voltas Ltd., AIR 1973 SC 225 = 1977 E.L.T. (J 177), was rendered, the petitioners were paying excise duty on the basis of the list prices at which the goods were sold to wholesalers at different places in India. After the above decision was rendered, the petitioners claimed before the Central Excise Authorities that the computation of their liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to the company was attributable to post-manufacturing expenses incurred by it. 3. The learned Single Judge held that the expenses incurred in connection with marketing and distribution of goods, interest on the value of goods attributable to the period between the time at which the goods leave the premises and the time at which the price is paid by the wholesaler and the freight charges for transporting the goods from the factory gate to the selling points, where the goods are sold to the wholesalers, clearly fall outside the scope of the manufacturing expenses in view of the enunciation made by the Supreme Court in Voltas' case - 1977 E.L.T. (J 177) and that a proportionate deduction from the list prices has to be made before arr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent of its production of these articles in the factory in question during the relevant period. Apart from these sales, it also used to sell the articles to wholesale dealers from different parts of the country in pursuance of the agreements entered into with them. The agreement with the wholesale dealers provided, among other things, that the dealers should not sell the articles sold to them except in accordance with the list prices fixed by the company, that the company would sell them the articles at the list prices less 22 per cent discount. The quest;on which fell for decision was whether the company was liable to be charged with excise duty on the basis of the price of retail sales made by it directly to the consumers from its Hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the existence of market in the proper sense of the term provided the articles themselves could be sold wholesale to traders, even though the articles are sold to them on the basis of agreements which confer commercial advantages upon them. It was further held that the application of clause (a) of Section 4 of the Act does not depend upon any hypothesis to the effect that at the time and place of sale, any further articles of like kind and quality should have been sold, and if there is an actual price for the goods themselves at the time and place of sale and if that is a `wholesale cash price', the clause is not inapplicable for want of sale of other goods of a like Kind and quality. ***** 8. It is thus clear that the wholesale price ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
