TMI Blog1980 (12) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... ice list, the petitioners had calculated the cost of torch bodies on the basis of price of slugs which has been arrived at after including an amount of Rs. 50/- being the anticipated price rise w.e.f. 1-3-1970 in the base price of aluminium slugs. Eventually when price rise did not take place, they filed another price list dated 7-9-1970 with effective date as 1-3-1970 and in that price list they had calculated the cost of torch bodies on the basis of the price of slugs reduced by Rs. 400 per M.T. vis-a-vis the base prices shown in the price list dated 26-3-1970. The reduction in the base price of aluminium slugs was carried out by them on the ground that the anticipated price rise did not materialise and that the base price had reduced fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the basic value of the slugs. On the basis of the said observations, the Appellate Collector rejected the appeal. 4. In the Revision Application, the petitioners have inter alia stated that the Appellate Collector had erred in holding that the duty paid on aluminium slugs should be included in the manufacturing cost of torch bodies for the purposes of levy of duty on the item and in confirming the order of the Supdt. enhancing the base price of the aluminium slugs by Rs. 350/- per ton while approving their revised price list dated 7-9-1970. 5. At the time of personal hearing, the petitioners stated that in the price list which they had filed on 26-3-70, they went by the old price adding thereto the anticipated increase of Rs. 50/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment and they had duly declared that value in the price list of 7-9-1970. They further stated that the supplier having made it quite clear that they were not going to pass the burden of excise duty of Rs. 350/- per ton which they were absorbing earlier and that fact also being quite obvious from the invoice issued to them from the price of slugs by the Indian Aluminium Co., the price declared by them for the impugned goods on the basis of the cost price of the slugs should have been accepted. 6. The petitioners also contended that the excise duty element on the slugs for the proforma credit which was available to them should not have formed part of the price of slugs for the purpose of computation of cost of the extruded shapes and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the actual price of the raw material i.e. aluminium slugs, is readily available, there is no reason for adopting the notional price such as the control price of the raw material which existed at the time of consumption of the slugs. Even the Courts have gone by the concept of actual cost of production and manufacturing profit for determining the assessable value under the Central Excises Salt Act, 1944. In that view of the matter, the Government observe that the order of the Supdt. was legal and correct and the Government therefore do not find any reason to interfere with the orders of the lower authorities. 8. As regards the question as to whether the price of slugs should be reduced by the amount of duty paid on the same in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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