TMI Blog1990 (2) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... re posted for hearing Shri S.K. Bagaria, the learned Counsel appearing for the Stay Petitioners submitted that the issue involved in both these cases is common and accordingly, he is placing the two cases at a time for the consideration of a common decision by the Bench. He states that the demand has been raised on them on the ground that duty had not been initially paid by them on the value of the excisable goods manufactured by them and supplied to Railways to the extent of the inspection charges paid by the customers viz. the Railway Board to the Inspection Agency nominated by them. Shri Bagaria contends that the goods in question had reached fully manufactured stage and had also been tested by them, after which they sent intimation to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demands are time-barred for most of the period in the Case covered by Stay Petition No. 354/89. He pointed out that the proceedings had actually been initiated after the receipt of an audit report by the Audit Party of the Accountant General. The relevant extract of the said audit report dated 28-6-1983 was enclosed to the notice dated 20-11-1983 showing a short-levy of Rs. 38,056.00. Shri Bagaria further stated that when the question of includibility of the testing charges in the assessable value was thus in the knowledge of the Department, raising the allegation of mis-statement or suppression does not arise. As regards the order covered by the other Stay Petition No. (SB)-355/89 he submitted that the demands had been issued in 1989 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Bench, Delhi for their disposal. 5. Replying to the submissions advanced by the learned Counsel for the petitioners, the learned Senior Departmental Representative, Shri M. N. Biswas speaking on behalf of the respondent Collector pointed out that the tests are carried out by the RITES in the factory of the manufacturers and such steps are necessary for enabling the goods to reach the marketable stage. Without such tests the goods cannot be cleared from the factory. He also contended that irrespective of whether the testing charges are paid by the Railway Board or by the manufacturers, such testing charges are very much part of the cost of manufactures as had been rightly held in the impugned order by the Additional Collector of Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here, which may spell out the reason, indicated that he is not aware of any such order. The applicants appear to have an arguable case when they say that the testing charges had been carried out by RITES at the instance of the buyers over which they have no control and which they did not ask for and that the goods had reached the fully manufactured stage when they had carried out the test getting the goods ready for inspection and taking delivery by the exporters. That apart, the applicants appear to have a stronger case on the ground of time-bar. On this point we have taken note of the argument of the learned S.D.R. that it was the responsibility of the assessees who are the applicants in the present cases to disclose the element of testin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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