TMI Blog1991 (7) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... lue in excess of the invoice value, seeks to exempt the manufacturer from payment of duty "in excess of the duty" calculated on the basis of the "invoice price". Allow these appeals; set aside the order of the authorities as well as the affirming order of the authorities as well as the affirming order of the Tribunal under appeal and hold that the appellant was entitled under the said Notification No. 120/75-C.E. to exemption from that part of the duty as was in excess of the invoice-price which, we hold, was not required to include the value of the "wheel-sets". - 5969-70 (NM) of 1990 - - - Dated:- 31-7-1991 - M.N. Venkatachaliah and S.C. Agrawal, JJ. [Order]. - These appeals arise out of and are directed against the common ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts the value in excess of the `invoice value' which represented the price of the wagon-bodies was exempt from levy of duty under the Exemption Notification No. 120/75-C.E., dated 30th April, 1975 issued under Rule 8 of the Central Excise Rules, 1944. What is implicit in the second contention is that, but for the said Notification No. 120/75-C.E., dated 30-4-1975, the assessable-value would otherwise require the exclusion in it of the value of the "wheel-sets" also on the premise that the "wheel-sets" became an integral part of the wagons, even though the "wheel-sets" had been supplied free of cost by the Railway themselves. The Notification No. 120/75-C.E. exempted "so much of the duty of excise .........as is in excess of the duty calculat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, on sale, from so much of the duty of excise leviable thereon as is in excess of the duty calculated on the basis of the invoice price (excluding duty and local taxes, if any, included in such price) charged by the manufacturer for the sale of such goods : Provided that the aforesaid exemption shall be admissible only if- the manufacturer files with the Superintendent of Central(i) Excise having jurisdiction a written declaration to the effect that he opts to avail of the said exemption : Omitted as unnecessary(ii) and (iii) the invoice price is not influenced by any commercial,(iv) financial or other relationship whether by contract or otherwise between the manufacturer or any person associated in business with the manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding therein the value of the "wheel-sets". Dr. Pal said that clause (iv) did no more than merely importing the requirement that the invoice price should reflect a transaction at arm`s length and not that appellant`s invoice-price should also include the value of the "wheel-sets" supplied by the Railways. Dr. Pal further urged that the very purpose of the exemption was to relieve the manufacturer from bearing the burden of the duty on such part of the assessable-value as did not reflect the value of his supply and services but represented the value of the "wheel-sets" supplied by the Railway Administration itself free of charge. If Clause (iv) was construed in the way in which the Tribunal did, the effect, counsel said, would be to take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon the appellant to include the value of the "wheel-sets". The contract between the parties does not also require this. The way in which the Tribunal looked at the Notification is neither good sense nor good law. Such construction would make the Notification and the exemption contemplated thereunder meaningless. The need for the exemption arose in view of the fact that "assessable-value" was higher than the "invoice-value". Requiring the former and the latter to be the same as something compelled by Clause (iv) is really to construe the Notification against itself. 9.Shri Subba Rao placed strong reliance on the pronouncement of this Court in M/s. Burn Standard Company Ltd. Anr. v. Union of India Ors. [1991 (3) Judgments Today 108 = 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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