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1991 (7) TMI 102 - SC - Central ExciseWhether the excise duty under Sections 3 and 4 of the Central Excises and Salt Act, 1944 is to be charged on the invoice-value of the wagon or on the value of completed wagon including that of the "free supply items"? Held that:- It is not disputed that the appellants are manufacturers of wagons. What comes down from the assembly-line of the appellant's factory is a complete wagon and as such the appellant being manufacturer of wagons, is liable to pay duty of excise on the value of a complete wagon. The "free supply items" like wheel-sets, etc., in the process of manufacturing become part of the complete wagon and lose their identify. It hardly matters how and in what manner the components of the wagon are procured by the manufacturer, so long as the appellant is manufacturing and producing the goods called "wagons" it is liable to pay duty of excise on the normal value of the wagon. The contention of the learned counsel for the appellant cannot be accepted that the value of the "free supply items" should not be included in the assessable value of the wagons manufactured by the appellant. No infirmity in the reasoning and the findings reached by the Division Bench of the High Court. Appeal dismissed
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