1987 (4) TMI 166

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....from their customers through a separate entry in the sale invoice for the pump-set, should be added to the assessable value of the pump-set for charge of Central Excise duty thereon. The period involved generally is from 1-10-75 to 30-9-76. 2. We have heard both the parties, perused the record and given the matter our earnest consideration. In the case of M/s. T.R. Industries, we have particularly examined their written submissions in view of their letter dated 27-3-1987 requesting us to decide their appeal without their personal presence. 3. It is now the settled position in law that the full intrinsic value of an article must include the cost of all its raw materials and components, vide the Supreme Court judgment in the c....

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....an identifiable manner; only rotors and stators came into existence and as such there was no question of payment of duty on electric motors at the intermediate stage. Even if factually correct, this argument suffers from two flaws. First, assuming that an electric motor as such does not come into existence, rotors and stators would, in any case, have to pay duty as components of electric motors under Item No. 30(4) of the tariff. For the purpose of the costing of the final product, it is immaterial whether duty on its raw materials and components was paid under this item or that of the tariff. The material point is that if the duty was paid, it has to enter into the value of the finished goods. Secondly, even assuming that no duty, whether ....

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....mselves. 6. If the aforesaid position as given out by the appellants if factually correct, there is force in their second argument. Since the set-off provision exempted the motor/rotor/stator part of the duty, the lower authorities are not justified in insisting that such duty should be included in the assessable value of the pump. Further, if the appellants have not realised any excise duty from their customers and retained it with themselves, there is no question of treating the retained duty as a part of their price realisation and adding it to the assessable value. In the light of this conclusion reached by us, we remand all the twenty appeals to the Assistant Collector. The Assistant Collector should verify whether the assertio....