TMI Blog1975 (7) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... er rubber products was commenced from 1970. 2. The petitioner company has sales and technical organisation independent of the manufacturing units. There is no ex-factory price for the products manufactured by the petitioner and normally no contract is entered into for the sale of the products for delivery at the factory gate. On the other hand the goods are sent over to the sales depots of the petitioner company situated in various places in India and irrespective of the distance of the depots from the factory or its location goods are sold at a uniform price in all these depots. There are two prices fixed for she products, one the billing price and the other the price at which it is sold to the consumers. The billing prices are the pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory or to her premises for delivery of the place of manufacture or production, or if such article is not old or is not capable of being sold at such place, at an other place nearest thereto. Explanation. - In determining the price of any article under this section, no abatement or deduction shall be allowed except in respect of trade discount and the amount of duty payable at the time of the removal of the article chargeable with duty from the factory or other premises aforesaid. 4. It is evident from Section 4 that the value to be adopted for the purpose of assessment to duty is not the price at which the manufacturers actually sells the goods at the sales depots or the price at which goods are sold by the dealers to the customers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rading profit cannot be taken into account for determining the price for the purpose of levy of excise duty. Therefore in a case where the price realised is a price of a point where the goods are sold after post-manufacturing operations, it may be that the cost-structure may include (1) manufacturing cost, (2) manufacturer s profit, (3) freight and other charges and (4) the trading profit. Only the first two of these are to be taken into account for the purpose of levy of excise duty for, it is on the goods as manufactured and deliverable at the factory gate that duty has to be levied. 6. Section 4(a) refers to the wholesale cash price for which an article is sold or is capable of being sold and the time is that of removal of article cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I am called upon to express my opinion in view of the course which I purpose to adopt in this petition. Suffice to say that the Excise authorities were right in their stand that they are entitled to levy duty on the billing price without making allowance for all Items of operation subsequent to manufacture. What all Items should be deducted from the bill price is a matter which calls for examination by the authorities competent to levy the excise duty. The stand taken by the respondents, the Superintendent of Central Excise, the Collector, Central Excise and Customs and the Central Government cannot be sustained. 8. In the view that I have taken here, I am supported by the observation made by the Supreme Court in the recent decision in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondent under which certain commercial benefits were conferred upon them in consideration of their undertaking to do service to the articles sold, or because of the fact that no other person could purchase the articles wholesale from the respondent. We also think that the application of clause (a) of Section 4 of the Act does not depend upon any hypothesis to the effect that at the time and place of sale, any further articles of like kind and quality should have been sold. If there is an actual price for the goods themselves at the time and place of sale and if that is a wholesale cash price, the clause is not inapplicable for want of sale of other goods of a like kind and quality. 9. The said passage was cited with, approval by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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