TMI Blog1980 (6) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... under the pattern of distribution followed by them for the past several years, the petitioners after manufacturing and packing the said soaps and detergents transport the same from their aforesaid factories at Bombay and Calcutta to 41 depots maintained by the petitioners throughout India. Thereafter the petitioners supply the said soaps to their approximately 5000 redistribution stockists or wholesale dealers from such depots. Under the terms of business agree upon between the petitioners and their said stockists, the petitioners sell the said soaps and detergents to the said stockists at the applicable prices and, in addition thereto, recover transport charges and other associated charges described in the invoices as distribution charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 116.59 lakhs and Rs. 311.80 lakhs respectively aggregating to Rs. 4,28.39 lakhs and recovered from their said stockists as delivery charges aggregate amounts during the said years of Rs. 98.38 lakhs and Rs. 352.60 lakhs respectively, aggregating to Rs. 450.98 lakhs. In this connection, the petitioners seek to rely on the certificate of their Chief Accountant certifying the correctness of the aforesaid figures. 5. The petitioners further say that in the invoices prepared and submitted by them from time to time to their said stockists, such delivery charges have always been shown separately as distribution charges. The petitioners also say that they have submitted from time to time price-lists of the soaps and detergents manufactured by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 690 dated 16-12-1974 was in respect of Rs. 1,18,239.51. The seventh show cause notice was dated 16-1-1975 hearing No. 205 asking the petitioners to show cause why a sum of Rs. 2,62,526.19 should not be recovered from them. The eighth and the last show cause notice dated 2-1-1976 hearing No. 26 covered a sum of Rs. 1,80,459/-. 7. In the meanwhile, by an order dated 11-12-1974 passed in respect of the first two show cause notice (Ex. C and G to the petition) relating to soap, the 3rd respondent confirmed the same on the ground inter alia that under the provisions of the said Act, there is no question of making any deduction of post manufacturing expenses. As similar order was passed by the 3rd respondent in respect of the first two show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oners also seek a writ of mandamus directing the respondents to withdraw or cancel the said show cause notices (Ex. K M.O. and Q to the petition), to withdraw or cancel the communication or decision dated 22-2-1975 (Ex. U. to the petition), not to include in the assessable value of the soaps and detergents manufactured by the petitioners the said delivery charges, and to permit the petitioners to clear the soaps and detergents manufactured by them by paying duty thereon without including in the assessable value thereof the said delivery charges. 10. The respondents in their return have stated that they are not aware of the pattern of distribution at the petitioners' factory at Calcutta and that the petitioners have not disclosed the term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. v. Union of India, 1979 (4) E.L.T. (J 476). This decision was followed in a later case of Poona Beverages P. Ltd. v. A. K Bandopadhyay and others, 1980 (6) E.L.T. 193 (Bombay). These decisions bring out the proposition that freight cannot be included in assessable value where goods are delivered to a wholesaler at a fixed price which includes an element of freight to be charged to the wholesaler as a part of the price and such charges on account of distribution cost of freight are liable to be deducted from the sale price. Shri Dalal, learned Counsel appearing for the respondents, inter alia pointed out that an appeal is pending in the Supreme Court against the decision in Indian Tobacco Co. Ltd. v. Union of India. This, however, does n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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