1996 (8) TMI 130

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....for supply of electric storage batteries. The batteries were to be manufactured with old containers which were to be supplied by the Railways. It was agreed that, on this account, there would be a rebate of Rs. 50/- from the price of the finished batteries which was fixed at Rs. 309.50 a piece. The contract was subsequently amended; thereunder the Railways agreed to supply to the appellants the le....

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....ehalf was given. Upon considering the representation of the appellants in reply, the order of the Appellate Collector was set aside. The Central Government held that under Section 4 of the Act, abatement or deduction could not be allowed in respect of the value of the old containers. The order of the Central Government was challenged by the appellants in a Writ Petition filed in the High Court at ....

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....eir assessable value had to include the cost of the battery inclusive of the rebate amount of Rs. 80/-. 3.It is that order of the Division Bench which is in appeal before us. Learned counsel on behalf of the appellants relied upon the judgment of this Court in Collector of Central Excise, Madras v. M/s. Indian Oxygen Ltd., 1988 (36) E.L.T. 730 (S.C.) = 1988 (4) SCC 139. The facts of that case d....

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.... the activity of supply of cylinders to purchasers of the gases was not an activity for the manufacture of the gases. It was ancillary to it, but not incidental. Any income earned in the shape of interest on deposits or on the rental would not be the price for the manufacture of gases and, therefore, these amounts could not be included in the assessable value of the gases. 4.The more opposite j....