TMI Blog2000 (6) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... nflicting decisions rendered by Benches of two Members in cases filed by same party, namely, the Steel Authority of India Ltd. In the first case reported in 1997 (90) E.L.T. 502, this Tribunal took the view that Steel Development Fund (SDF), Engineering Goods Export Assistance Fund (EGEAF) and Joint Plant Committee Cess/charges (JPC) cannot be included in the assessable value of different categories of iron and steel manufactured by various manufacturers of steel in India. When the same issue came up again, Eastern Bench Calcutta of this Tribunal as per the decision reported in 1998 (24) RLT 394 took a contrary view and held that the above mentioned charges are part and parcel of assessable value of the produce and the department was entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Government is entitled to issue orders providing for regulating production, supply and distribution of any essential commodity for their equitable distribution and availability at fair prices. In exercise of this power, Central Govt. issued Iron and Steel (Control) Order, 1956. Clause 15 of that order authorised the Controller to fix maximum prices at which any iron or steel may be sold. Clause 17B empowered the Central Govt. to set up committees for the purpose of giving effect to the provisions of the Iron and Steel (Control) Order. The Committee so constituted was to carry out the functions specified in the notification issued by the Central Govt. in that behalf. Invoking the provisions contained in clause 17B of the Iron and Steel ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eel Development Fund (SDF), Engineering Goods Export Assistance Fund (EGEAF) and JPC Cess. The rates at which these funds are to be collected are mentioned in the annexure to the said notification. Pursuant to these notifications, manufacturers of iron and steel included these elements of SDF, EGEAF and JPC Cess in their invoices over and above the ex-works prices determined under sub-clause (8) of notification dated 7-4-1971. 4. The question that arises for consideration in these appeals is whether SDF, EGEAF and JPC Cess form part of the assessable value of iron and steel sold by the manufacturers. 5. To understand the nature of amounts collected as SDF, JPC Cess and EGEAF, reference has to be made to the notification dated 27th Decem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 113.00 per tonne on pig iron and Rs. 300.00 per tonne on steel materials. JPC Cess on steel is Rs. 3.00 per tonne as indicated in Annexure II to the minutes. These additional elements forming SDR, EGEAF and JPC Cess are independent of the ex-works prices of the material manufactured. 6. The notifications enjoin the manufacturers to collect SDF, EGEAF and JPC Cess. The amounts so collected are not to be appropriated by the manufacturers. The amounts so collected are to be remitted to the JPC. Manufacturers are constituted collection agents of these amounts. Excise department wants these amounts so collected to form part of the sale price of goods manufactured. According to Section 4(1) of the Central Excise Act, 1944, where duty of exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tomers, amount collected towards Dharmada was shown as a separate item different from the price of the goods sold. The question was whether the said collection was an income of the assessee company. Taking the view that Dharmada amount paid by customers cannot be regarded as part of price or surcharge on price of goods purchased by customers, their Lordships observed :- The amount of dharmada is undoubtedly a payment which a customer is required to pay in addition to the price of the goods which he purchases from the assessee but the purchase of the goods by the customer would be the occasion and not the consideration for the dharmada amount taken from the customer. It is true that without payment of dharmada amount the customer may not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omers those items falling under Section 4(4)(d)(ii) alone can be deducted for finding out the assessable value of the goods manufactured. Since SDR, EGEAF and JPC Cess do not fall within any of the categories mentioned in that sub-clause, it is contended that the entire amount paid by a customer should be treated as the assessable value. This argument, we are afraid, is not having any legal basis. Various remittances made mention of in that sub-clause are to be excluded in finding out the assessable value. This means that those items are to be deducted from the normal price. In the instant case, SDF, EGEAF and JPC Cess do not form part of the price of the goods manufactured, because they are directed to be collected by the manufacturers ove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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