9911796707
TMI Blog1991 (7) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... was also disposed of but that matter is not carried up in appeal here. 2.The appellant, M/s. Texmaco Ltd., pursuant to contracts entered into in this behalf with the Railway Administration fabricated and delivered to the Railways wagon-bodies mounted on "wheel-sets" supplied by the Railways. The invoices raised by the appellant respecting these wagons reflected only the price of the wagon-bodies without including the value of the "wheel-sets" on which the wagon-bodies were mounted. The goods were cleared for purposes of Excise duties on such invoice-value. The Revenue raised demand for recovery of short-levy and sought to recover the unpaid duty on the value of the "wheel-sets" also. This claim for recovery of the short-levy having been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the clear findings given by the lower authorities that no wagon is complete without the wheels; what has been cleared and removed by the appellants is the wagon mounted on wheel sets and not the wagon body alone................ On the issue of determination of assessable value, the Supreme Court has held that for the purpose of levy of excise duty, the value of the article is the full intrinsic value of the article inclusive of the cost of the materials and components supplied free by the customer and irrespective of the fact that no expenditure was incurred by the manufacturer on such components." No fault can be found with this reasoning of the Tribunal, indeed, considerations of ownership of the goods are extraneous to levy of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants` counsel that assessable value of the article is different from the consideration received by the appellants to claim benefit under Notification 120/75. To claim exemption on benefit under Notification 120/75 it should be subjected to in compliance with the conditions specified therein. Condition No. IV of Notification No. 120/75 required that the invoice value should be the full commercial price of the article According to the decision of the Supreme Court (Supra) the value of the article is the intrinsic value and not restricted to consideration received by the appellants as urged by the appellants` Counsel. In the view we have taken, the appellants are not entitled to concession under Notification No. 120/75, dated 30-4-1975." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the reasoning of, and the conclusion reached by, the Tribunal was correct. 8.On a consideration of the matter we are afraid the Tribunal fell into an error in its understanding of the notification. The Notification posits and predicates the possibility that the "invoice-value" could be lesser than the "assessable-value" and, taking into account the need to mitigate the hardship on the manufacturer of being called upon to pay duty on the value in excess of the invoice value, seeks to exempt the manufacturer from payment of duty "in excess of the duty" calculated on the basis of the "invoice price". There is no dispute in this case that the invoice price represented the value of the wagons, less the value of the "wheel-sets" supplied by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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