Law: Central Excise and Salt Act, (I of 1944)

Section: 4(1)(a),4(4)(d)(i)

[Central Excises and Salt Act (I of 1944)]........Ss 4(1)(a) & 4(4)(d)(i)--Value of goods--Determination of--Ex-factory price was ascertainable--Value should be determined on that basis and other expenses, costs or charges be excluded. AIR 1984 SC 420 ref. ORDER SABYASACHI MUKHARJI, J.--These are appeals under S.35 L(b) of the Central Excises & Salt Act. 1944 (hereinafter called `the Act'). 2. The appellant manufactures compressed Oxygen and dissolved acetylene falling under tariff item No. 14H of the First Schedule of the Act as it stood at the relevant time. The appellant had received show-cause notice in respect of the period from 1-1-1984 to 31-1-1984 and also five other show-cause notices for different period, in respect of the price lists submitted by the appellant seeking approval of the price list of gases in question. It was found by the Tribunal that the appellant manufactures and sells Oxygen and DA. Gases. These are sold from the factory of the appellant at Visakhapatanam and from their depot/service centres at Vijayawada, Rajamundry, Vadlapudi Jeypore and Damanjodi. They sell their produce to Government undertakings as per the rates determined by DGS & D. New Delhi. In respect of other buyers the appellant sell their product at various prices on slab basis. It is stated that the slab basis is related to what the manufacturers call a quantitative discount. According to the Tribunal, the revenue had undertaken verification of the prices charged by the manufacturers at their depots and service centres. These were found to be much more than the prices indicated in the approved price list. It also observed that the manufacturers did not furnish to the department quantities of their product which were sold from their depots/service centres and that the appellant charged from their buyers, apart from the declared price list, the following:-- (i) Delivery and collection charges (where applicable); (ii) Cylinder deposit; and (iii) Rentals. 3. The department's case was that these being additional charges, should form part of the assessable value. 4. It was urged on behalf of the revenue that the price list was submitted by the manufacturers in…

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