Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excises & Salt Act S.4(1)-Rules 6 1944/Central Excise (Valuation) Rules 1975 7-Distil/ery |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Central Excises & Salt Act, 1944/Central Excise (Valuation) Rules 1975; S.4(1)-Rules 6,7-Distillery-Purchasing bottles from an outside company-Later setting up a bottling unit-Prices declared by the bottling unit-Tribunal directing adoption of price approved for the earlier supplier-Where the price declared by the new unit is higher than the earlier supplier's, the higher price declared should be adopted-Held, valid.The appellant is a manufacturing unit within the Khoday Group of Industries, its holding company being Khoday Distilleries Ltd. The appellant is a division of Khoday Brewing and Distilling Industries Private Limited which is also held by Khoday Distilleries Ltd. The bottles required by this group of industries were purchased from Alembic Glass lndustries. In 1978, the appellant-unit was established for the purpose of manufacturing bottles required by the Khoday Group of Industries.The appellant filed price lists which were approved provisionally by the excise authorities. On scrutiny the authorities found that the value indicated was much below the cost of production and that the date furnished was vague and incomplete. It was also found that some bottles were sold to others also. Show cause notices were issued to the appellant,proposing to re-determine the values of bottles under Rule 7 of the Central Excise (Valuation) Rules, 1975 i.e., under clause (b) of S.4(1) of the Central Excises and Salt Act. After hearing the appellants, the Assistant Collector confirmed the values proposed in the show cause notices. The appeal preferred by the appellant was allowed by the Collector (Appeals). He directed the Assistant Collector to adopt the sale price charged by the appellant to others as the basis and to finalise the value under S.4(1)(a) of the Act. The Collector of Central Excise went in appeal and the Tribunal allowed the same. It directed that for the period 1.7.1979 to 30.6.1983 wherever the prices declared were lower than that of Alembic for the comparable bottles, the prices as approved for Alembic should be adopted.In this appeal, the appellant contended that the Tribunal should have directed that prices of Alembic alone should be uniformly adopted as the value of all types of bottles manufactured by the appellant and it could not have directed the determination on a dual and mutually inconsistent basis, viz. Where the prices of Alembic were higher than the prices declared, the prices of Alembic should be adopted but where the prices of Alembic were lower, the appellants prices should be adopted.The respondent contended that where the appellant itself has declared higher values it cannot object if those values are accepted. |
Judge | Hon'ble Mr. Justice B.P. Jeevan Reddy |
Neutral Citation | 1995 INSC 8 |
Petitioner | M/s United Glass, Bangalore |
Respondent | Collector Of Central Excise |
SCR | [1995] 1 S.C.R. 47 |
Judgement Date | 1995-01-05 |
Case Number | 2466 |
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