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TMI Blog1984 (1) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Depot) Expenses, (c) Sales Promotion Expenses, (d) Interest on the finished goods and on book debts, and (e) Trading Selling Profits. 2. The claim for deduction in respect of all the above items having been rejected by the Assistant Collector of Central Excise, this petition has been filed by the petitioners. 3. It is well-known now that by virtue of the decision of the Supreme Court in Union of India and Others v. Bombay Tyres International Pvt. Ltd. - 1983 Excise Law Times 1896, the whole law regarding deductions permissible by way of post-manufacturing expenses has undergone a radical change. The petitioners' contention before us, therefore, was that the petitioners should be allowed to withdraw their petition and claim a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 4 of the order where the propositions have been set out, the Supreme Court has clearly stated : "No deductions can be made from the wholesale price determinable under sub-section (1) and (2) of Section 4 save and except in respect of (a) trade discount; (b) the amount of excise duty, sales tax and other taxes, if any, payable in respect of the excisable goods; and (c) averaged freight." The fact that no other deductions can be made except those mentioned above is further emphasised by the following observations :- "No other expenses incurred by the assessee, such as, expenses of advertisement or publicity or expenses of storage of finished excisable goods or expenses of sales organisation or expenses of primary and secondary packing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be deducted in order to arrive at the real wholesale cash price at the factory gate and no excise duty can be charged on it." The learned Counsel for the petitioners has pointed out to us that in paragraph 55 the Supreme Court observed that they had considered the claim to deductions under the specific heads enumerated by the assessees and the judgment was, therefore, confined to those items and no other head of expenses had been placed before the Supreme Court for their opinion. Our attention has also been invited to an order made by the Supreme Court on 14/15th November, 1983 in the same case and reported in 1983 Excise and Customs Reporter at page 2233D. This clarification refers to the deductibility of trade discounts, taxes such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred by the assessee will be deductible for the purpose of determining the value of the excisable goods. The claim as made is, therefore, liable to be rejected. 8. So far as Item (a) is concerned, a further enquiry may be necessary whether in a given case, the sale was at the factory gate or not and if the sale was not at the factory gate, then where the sale was made and if so what was the quantum of freight which was held to be deductible. Since this aspect of the matter will need a further enquiry, it is necessary to direct the Assistant Collector of Central Excise to redetermine the claim under this head after giving an opportunity to the assessee to place the necessary details in accordance with the law laid down by the Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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