1997 (7) TMI 253

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....i M. Ali, JDR, for the Respondent. [Order per : Justice U.L. Bhat, President].- Order-in-Original No. 24/D/89, dated 11-5-1989 passed by the Additional Collector of Central Excise, Chandigarh is being challenged in this appeal. 2. Appellant, engaged in the manufacture of polyurethane foam and articles thereof, was filing price lists from time to time and paying duty on the basis of a....

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....ditional Collector confirmed the demand. 3. So far as Head Office expenses are concerned, the matter is governed by the decision of the Supreme Court in M.R.F. Ltd. case 1995 (77) E.L.T. 433 (para 27), where it was held that the expenses incurred in maintaining and running the depots cannot be deducted from the price. 4. It is contended for the appellant that demand in respect of H....

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....t was being collected under the honest belief that the same would not be part of assessable value on the basis of the judgment in Voltas Limited case. Having regard to the aforesaid circumstances, we agree that the appellant cannot be held to be guilty of suppression of facts with intent to evade duty. Therefore the demand made in regard to Head Office expenses collected from buyers is barred by t....

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....l Collector did not examine the factual position urged by the appellant. If profit had been made by collecting charges in excess of the cost of running the trucks belonging to the appellant, the question would further arise whether the same can be regarded as ancillary activity as contemplated in Indian Oxygen Ltd. case 1988 (36) E.L.T. 730 (S.C.). Appellant has also urged that since factory gate ....