2000 (7) TMI 78 - SUPREME COURT

Why the assessable value should not be approved on the basis of Britannia's wholesale cash price?

Held that:- The present case is similar to Ujagar Print's case [1989 (1) TMI 124 - SUPREME COURT OF INDIA] wherein it was the grey cloth which was given to the processor whereas in the present case it was the raw material for the manufacture of biscuits given to the appellant. After the biscuits are made, they are given back to or are delivered under the instructions of Britannia. The appellant was entitled to receive processing charges which include its expenses plus profits for the purpose of determining the excise value. However, the cost of the raw material supplied by Britannia will have to be included in addition to the appellant's manufacturing costs and profit. What cannot be included on the ratio of Ujagar Prints' case is any profit of Britannia or expenses which are incurred after the manufacture of the biscuits by the appellant. Despite repeated attempts made by the learned counsel for the respondent, we are unable to distinguish this case from the ratio laid down by this Court in the aforesaid two decisions of Ujagar Prints'case.

This appeal is accordingly allowed.