1977 (5) TMI 19

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he petitioners are the manufacturers of electric storage batteries which are supplied to the Railways and are known as Train lighting cells. The process of manufacture with which we are concerned in this Rule admittedly is that the containers for these batteries are supplied by the Railway authorities to the petitioner and then they are recharged and sold to the Railways. In the bills which have b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....entral Excise. 3. This order has been challenged before me in this application. The impugned order itself proceeds on the basis that the containers for the batteries which are ultimately sold to the Railways are supplied by the Railway to the petitioner free of cost. In other words, no cost is incurred by the petitioner on account of containers in the process of manufacture of these articles. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to the manufacturer since the containers were obtained free from the Railways, its price was not part of the manufacturing cost as contemplated by the decision of the Supreme Court. In that view of the matter, Mr. Chatterjee contended that the Excise authorities were wrong in demanding excise duty in respect of the containers for which no cost was incurred by the petitioner in the process of manuf....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....shown in the bills and not R.. 241 which is Rs. 50 less for the containers. He further submitted that the rebate of Rs. 50 is really part of the cost incurred by the manufacturer who is the petitioner in this case. 5. I am unable to accept any of the contentions of Mr. Saraf. The sole and simple question appears to be as to what is the manufacturing cost of these batteries in so far as the peti....