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TMI Blog1976 (6) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent to refrain from assessing the recovery of excise duty on the post-manufacturing cost and selling profits on the products of the Company. Another prayer is for the issue of a writ of mandamus for directing the 1st respondent to allow clearance on the basis of Ex P4 series price lists without making any alteration. There is also a prayer for a writ of certiorari for directing the respondents to transmit all papers and documents relating to the orders of assessments for each of the years commencing from 1962 including the orders of assessments and levy and collection of duty to this court so that the same shall be quashed. A direction is also sought for to the respondents for refunding the excess amount collected from the petitioner on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s includes equalised freight, insurance expenses and distribution expenses referable to sales organisation alone, travelling expenses of sales and inspection staff and advertisement expenses, wholly attributable to sales promotion and all interests upon the finished goods stored at the depots outside the factory. It is alleged that all these expenses represent the post-manufacturing expenses of the petitioner's products. Hence the net-dealer price by which the sales are affected by the sales depots include a particular amount which could be representing only the post-manufacturing expenses being the average of the total expenses involved under the heads mentioned above. It is alleged that all the tyres and other products manufactured by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay excise duty on the post-manufacturing expenses. However, the Central Excise department had been insisting upon the petitioner paying the excise duty on the billing price which would represent the factory price including the elements representing the post-manufacturing expenses included in the dealer price. ***** 10. In respect of the question raised in this O.P. the matter is now concluded by the decision of the Supreme Court in A.K. Roy v. Voltas Ltd. - (AIR 1973 SC 225 = 1977 E.L.T. (J 177). A Division Bench of this court has to consider this question in writ appeal Nos, 461 and 462 of 1973 - 1979 (4) E.L.T. (J 89). There, the learned Chief Justice speaking for the Bench emphasised certain aspects which are clearly discernible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The goods have to be taken to far off places and to nearby places and it appears that the respondent has struck an average as the uniform cost of transport which is added and the billing price fixed for sale to the depots wherever they are situated. This is only a means by which a uniform price is fixed for the goods to be supplied to the depots wherever they are situated in India. But the important aspect is that price, termed the billing price, reflects not only the manufacturing cost and the manufacturing profit but the freight, insurance and the sale promotion cost and the portion of the cost attributable to overheads as far as the sale organisation is concerned. This was the specific contention of the respondent and the contention is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacture even in the absence of any evidence of actual wholesale cash price for such sales, such cash price of sales will have to be ascertained by reference to established factors". 13. In this O.P. there is also a specific averment that all the tyres and other products manufactured by the petitioner is capable of being sold in `wholesale at the place of manufacture or production. 14. In the light of the above discussion, I would issue a writ of mandamus directing the 1st respondent-Assistant Collector of Central Excise, lDO Ernakulam, to dispose of Exts P2 and P3 representations and pass orders in the matter in accordance with law in the light of the decision of the Supreme Court in AIR 1973 SC 225 = 1977 E.L.T. (J 177) and Wr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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