1977 (5) TMI 19

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..... es which are supplied to the Railways and are known as Train lighting cells. The process of manufacture with which we are concerned in this Rule admittedly is that the containers for these batteries are supplied by the Railway authorities to the petitioner and then they are recharged and sold to the Railways. In the bills which have been annexed to the petition, the price of the batteries, which h .....

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..... his application. The impugned order itself proceeds on the basis that the containers for the batteries which are ultimately sold to the Railways are supplied by the Railway to the petitioner free of cost. In other words, no cost is incurred by the petitioner on account of containers in the process of manufacture of these articles. 4. Mr. Somnath Chatterjee, learned Counsel appearing for the peti .....

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..... Railways, its price was not part of the manufacturing cost as contemplated by the decision of the Supreme Court. In that view of the matter, Mr. Chatterjee contended that the Excise authorities were wrong in demanding excise duty in respect of the containers for which no cost was incurred by the petitioner in the process of manufacture. Mr. Sahanlal Saraf, learned Counsel appearing on behalf of t .....

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..... ainers. He further submitted that the rebate of Rs. 50 is really part of the cost incurred by the manufacturer who is the petitioner in this case. 5. I am unable to accept any of the contentions of Mr. Saraf. The sole and simple question appears to be as to what is the manufacturing cost of these batteries in so far as the petitioner is concerned. In my view since the containers were from the Ra .....

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..... hat is the manufacturing cost as defined by the Supreme Court. This contention of Mr. Chatterjee is also in my view sound and be accepted. 7. In the view that I have taken, the impugned order dated 4th October 1975 must be quashed by a Writ of Certiorari and the respondent must be directed by a Writ of Mandamus to forbear from giving effect to the said order in any manner whatsoever. The respond .....

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