1981 (9) TMI 107

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....ained an Industrial Licence to manufacture valves. The valves are manufacture, from brass by hot forging of brass rods. In the year 1964, the petitioners obtained from the Government of India, a licence to manufacture regulators and the regulators are manufactured from corrosion resistant materials such as zinc alloy die casting, brass and stainless steel. The regulators are used to regulate pressure of gas and are not required in every type of utilisation of gas. The petitioners have been selling gas cylinders without fitting the valves and regulators. Though in some cases, the customers purchase cylinders fitted with valves and regulators, it is obvious that the valves and regulators are distinct from cylinders and are not parts of the cy....

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....alves and regulators had to be included in the assessable value of the gas cylinders because such valves and regulators were integral parts of the cylinders. On the strength of this finding, the Assistant Collector confirmed the demand made under the two show cause notices. 4. The petitioners carried an appeal before the Appellate Collector of Central Excise and that appeal was allowed by order dated February 8, 1975. The Appellate Collector felt that as the cylinders, valves and regulators are manufactured under two distinct industrial licences, the materials used for the cylinders and for valves and regulators being altogether different, their construction and method of manufacturing being different, the prices of valves and regulators....

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....alves in the assessable value of the gas cylinders went against the petitioners, the petitioners have filed the present petition under Article 226 of the Constitution of India. 5. Shri Setalvad, the learned Counsel appearing in support of that petition, urged that the petitioners had a factory at Chembur where the cylinders are manufactured, while the valves and regulators were manufactured at their factory at Surat. The learned Counsel pointed out that the manufacture of cylinders, valves and regulators is totally distinct from each other and different machinery is employed for such manufacture and so also the different raw material. Shri Setalvad points out that there are various companies which are manufacturing only valves and regula....