9911796707
TMI Blog1996 (5) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants to their purchasers M/s. Macneill and Magor Ltd. The case of the appellant is that the battery is cleared from Bangalore factory and that the steel plates which are supplied by the customer is received by them at Depot, Calcutta, where these batteries received from Bangalore factory are fitted together before supply to the supplier as per contract. The department on perusal of the contract, noticed steel tray being fitted with Batteries received from Bangalore factory and therefore, issued a show cause notice dated 8-10-1984 alleging that fixing of steel tray to the battery is an ancillary process to the completion in the manufacture of such Fork lift batteries. On that ground it was stated that the value of the steel tray is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. v. Collector of Central Excise, as reported in 1994 (72) E.L.T. 342 which is based on the judgment of Bombay High Court rendered in the case of A.Z. Metal Industries Pvt. Ltd. v. Collector of Central Excise as reported in 1992 (62) E.L.T. 724. In both these rulings it was held that value of plastic cannot be added to the aluminium tubes, although both are fitted together. He also referred to an earlier judgment of the Tribunal rendered in the case of Metal Box of India Ltd. v. Collector of Central Excise, as reported in 1983 E.L.T. 956 which according to him is now confirmed by Hon'ble Supreme Court as can be noticed in 1990 (45) E.L.T. A33. He further drew support from another judgment rendered in the case of Diamond Clock Manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether the value of the steel trays is required to be added to the value of Batteries as per Section 4 of the Central Excise Act, 1944. The view taken by the lower authorities is that the tray becomes part and parcel of the battery, inasmuch as fixing the steel plate to the battery is an ancillary process to the completion of the manufacture of such Fork lift batteries. In that view the department is seeking the addition of value of steel plates to the value of the battery. The answer has to be given in the negative. The reason being that the battery which is cleared from the factory is in a fully manufactured form and no further processes are required for its completion for the purpose of fitting the battery for use in Fork lift. F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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