1988 (9) TMI 140

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....der Rajan, J.D.R., for the Respondents. [Order per : K.L. Rekhi, Member (T)]. -The appellants were working under valuation procedure prescribed in exemption Notification No. 120/75-Central Excises, dated 30-4-1975 and paying duty on the basis of their invoice value. They manufactured bogies and supplied them to the Indian Railways. The Wheels and Axles used in the bogies had been supplied to....

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....ntative of the department relied on the judgment of the Hon'ble Supreme Court in the case of M/s. Empire Industries Ltd. - [1985 (2&) E.L.T. 179 (S.C.)]. paragraph 47, according to which the value for assessment of Central Excise duty is the full intrinsic value of the article, inclusive of the cost of the materials and components supplied free by the customer. The Ld. Representative of the depart....

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....rge of Central Excise duty was a bogie fitted with Wheels and Axles. But the invoice issued by the appellants was not for the complete bogie but for the bogie minus Wheels and Axles. The invoice value was, therefore, not of the complete article chargeable to duty. According to the terms of the contract between the Railways and the appellants, the Railways, in addition to paying the price as per in....