1996 (10) TMI 110 - SC - Central Excise

Tribunal rules on excise duty value of ball bearings and accessories, allowing appeals on post-manufacturing expenses

The Tribunal overturned the decision regarding the excise duty value of ball bearings, ruling that the duty liability should be based on the composite ... Valuation - Accessories - Packing charges Two issues: (1) the value for the purpose of excise duty of ball bearings manufactured by the assessee; and (2) post-manufacturing expenses (wooden crates and transit insurance). The assessee contended a complete ball bearing comprises inner ring, outer ring, ball/rollers and cage, while items such as snap rings, sleeve lock devices, cup assemblies, oil seals, eccentric collars and dust shields are accessories. The Revenue relied on clearance at the factory fitted with accessories and on invoices/catalogue quoting a composite price. The Tribunal upheld Revenue because the article was cleared as ball bearings and no separate price for accessories was shown. The Court held that the Tariff Entry at the relevant time (No. 49) read, 'Rolling bearings, that is to say, ball or roller bearings, all sorts', and that accessories do not fall under that entry; accordingly the Tribunal's conclusion was set aside. The second issue was remitted to the Assistant Commissioner of Central Excise, Ranchi, to determine allowable post-manufacturing expenses in light of Government of India v. Madras Rubber Factory Ltd. Appeals allowed; no order as to costs.