2001 (11) TMI 971

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....;  JJ. REPRESENTED BY : Shri S.C. Rudra, Advocate, for the Appellant. Shri A.K. Mondal, JDR, for the Respondent. [Order per : K.K. Bhatia, Member (T)]. -  The appellants manufactured Drilling Tools (TRR Bits) which are used in Drill Machines in coalfields. During the year 1996-97, their overall turnover was Rs. 29,92,905/-. In terms of the provisions of Notification No. 1/93-....

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....the goods valued at Rs. 76,717/- supplied free of costs to their buyers should have been included in the value for computing exemption limit of Rs. 30 lac and accordingly, a show cause notice dated 28-5-98 was issued to the appellants in which it was averred that while computing the clearance value for the year 1996-97, they had not added these two values to their turnover and by adding these valu....

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....hri S.C. Rudra, Advocate for the appellants and Shri A.K. Mondal, JDR for the respondent. The learned Counsel for the appellants submitted that the bits supplied to their buyers are free of cost in terms of the conditions of the contracts entered into with these concerns and hence the lower authorities have wrongly included their cost in the turnover of the appellants. It is contended that the low....

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....for which they are liable to duty. Admittedly, the goods supplied free of cost to the buyers are the same viz. TRR Bits which have been contracted to be supplied by them. For the free supplied goods to the buyers, the appellants have not charged any amount from them. Therefore, the question of adding any notional value in respect of the free supply goods to the turnover limit of the appellants wou....