TaxTMI 
TaxTMI 
1976 (6) TMI 32
X X X X Extracts X X X X
X X X X Extracts X X X X
....4(a) to P4(c) and in the meantime to direct the 1st respondent to refrain from assessing the recovery of excise duty on the post-manufacturing cost and selling profits on the products of the Company. Another prayer is for the issue of a writ of mandamus for directing the 1st respondent to allow clearance on the basis of Ex P4 series price lists without making any alteration. There is also a prayer for a writ of certiorari for directing the respondents to transmit all papers and documents relating to the orders of assessments for each of the years commencing from 1962 including the orders of assessments and levy and collection of duty to this court so that the same shall be quashed. A direction is also sought for to the respondents for refun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the petitioner in regard to the tyres and other products includes equalised freight, insurance expenses and distribution expenses referable to sales organisation alone, travelling expenses of sales and inspection staff and advertisement expenses, wholly attributable to sales promotion and all interests upon the finished goods stored at the depots outside the factory. It is alleged that all these expenses represent the post-manufacturing expenses of the petitioner's products. Hence the net-dealer price by which the sales are affected by the sales depots include a particular amount which could be representing only the post-manufacturing expenses being the average of the total expenses involved under the heads mentioned above. It is alleg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons in Section 4 of the Act the company would not be liable to pay excise duty on the post-manufacturing expenses. However, the Central Excise department had been insisting upon the petitioner paying the excise duty on the billing price which would represent the factory price including the elements representing the post-manufacturing expenses included in the dealer price. ***** 10. In respect of the question raised in this O.P. the matter is now concluded by the decision of the Supreme Court in A.K. Roy v. Voltas Ltd. - (AIR 1973 SC 225 = 1977 E.L.T. (J 177). A Division Bench of this court has to consider this question in writ appeal Nos, 461 and 462 of 1973 - 1979 (4) E.L.T. (J 89). There, the learned Chief Justice speaking for the B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....resent the manufacturing cost plus the manufacturing profit alone. The goods have to be taken to far off places and to nearby places and it appears that the respondent has struck an average as the uniform cost of transport which is added and the billing price fixed for sale to the depots wherever they are situated. This is only a means by which a uniform price is fixed for the goods to be supplied to the depots wherever they are situated in India. But the important aspect is that price, termed the billing price, reflects not only the manufacturing cost and the manufacturing profit but the freight, insurance and the sale promotion cost and the portion of the cost attributable to overheads as far as the sale organisation is concerned. This wa....