9911796707
TMI Blog2001 (11) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... i S.C. Rudra, Advocate, for the Appellant. Shri A.K. Mondal, JDR, for the Respondent. [Order per : K.K. Bhatia, Member (T)]. - The appellants manufactured Drilling Tools (TRR Bits) which are used in Drill Machines in coalfields. During the year 1996-97, their overall turnover was Rs. 29,92,905/-. In terms of the provisions of Notification No. 1/93-C.E., dated 28-2-1993 which provided exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free of costs to their buyers should have been included in the value for computing exemption limit of Rs. 30 lac and accordingly, a show cause notice dated 28-5-98 was issued to the appellants in which it was averred that while computing the clearance value for the year 1996-97, they had not added these two values to their turnover and by adding these values the total value of clearance would com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri A.K. Mondal, JDR for the respondent. The learned Counsel for the appellants submitted that the bits supplied to their buyers are free of cost in terms of the conditions of the contracts entered into with these concerns and hence the lower authorities have wrongly included their cost in the turnover of the appellants. It is contended that the lower authorities have failed to appreciate that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods supplied free of cost to the buyers are the same viz. TRR Bits which have been contracted to be supplied by them. For the free supplied goods to the buyers, the appellants have not charged any amount from them. Therefore, the question of adding any notional value in respect of the free supply goods to the turnover limit of the appellants would not arise. The value of the free supplied good ..... X X X X Extracts X X X X X X X X Extracts X X X X
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