1982 (9) TMI 55

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....exure 8 is the notice issued by the Superintendent, Central Excise, Jamshedpur (respondent No. 3) to show cause why penalty should not be imposed on them under Rule 173-Q( 1) of the Central Excise Rules, 1944 and why the demand should not be raised for differential duty on the goods already claimed after 20-6-1979 in respect of which the offence appears to have been committed under rule 10 of the Central Excise Rules. By Annexure 10 certain information has been sought in connection with Annexure 1. The controversy, therefore, in this application is what really amounts to wholesale price as envisaged in Section 4 of the Act aforesaid. In other words, whether post-manufacturing cost could also be treated as a part of the wholesale price of a ....

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....titioner duly certified by the Chartered Accountant in which post-manufacturing cost was deductive from the price in column No. 3 which was disallowed by Annexure 1. 3. In view of the two decisions of the Supreme Court followed by a decision of this court there is no doubt left that the post-manufacturing cost must be deducted from the price for the purpose of levying excise duty. It is surprising that the Patna decision has not been noticed by the authority in Annexure 2 although it was referred to in the petition showing cause by the petitioner. Even the Supreme Court decisions have not been correctly interpreted and the authority goes on to include such items which may be described as post-manufacturing cost. In view of what has been ....

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....-manufacturing cost which submission has been disputed by learned counsel appearing on behalf of the Government. As I have said, I do not propose to decide specifically what item constitutes post-manufacturing cost. It will be open to the petitioner to show to the authority in the light of the above decision what constitutes post-manufacturing cost and it will be open to the authority to examine this aspect of the matter in the light what has been stated above. 4. I have, therefore, no hesitation in quashing Annexure 1 and consequently Annexures 8 and 10 to the writ application with the aforesaid direction. The application is accordingly allowed and Annexures 1, 8 and 10 to the writ application are quashed. There will be no order as to c....