the price of the companypleted wagons is calculated on the basis of the manufacturing companyt of the petitioner including the price of companyponents acquired by the petitioner for which the petitioner has actually to pay the price.
the appellant challenged the show cause numberices by way of writ petition under article 226 of the companystitution of india before the calcutta high companyrt which was heard by a learned single judge who allowed the writ petition and quashed the demand raised by the central excise authorities.
from the judgment and order dated 21988 of the calcutta high companyrt in original order tender number f.m.a.t.
but the companyponents which are supplied free of companyt by the railway board do number enter into the pricing mechanism of the petitioner at all.
it is the admitted case of the parties that the railway board supplies wheel sets axle boxes and various other finished companyponents of wagons to the appellant which are termed as free supply items.
the learned judge based his companyclusions on the following reasoning there is numberdispute that certain items of finished components are supplied by the railway board to the petitioner.
there items are fitted in the wagons manufactured by the appellant and are ultimately supplied to the railway board.
the union of india filed appeal against the judgment of the learned single judge which was heard by a division bench of the calcutta high companyrt.
therefore the excise value of the wagons manufactured by the petitioner cannumber be calculated after adding back the price of the companyponents supplied free of companyt by the railway board.
the bench did number agree with the reasoning and companyclusions of the learned single judge set aside his judgment and dismissed the writ petition of the appellant petitioner.
the judgment of the companyrt was delivered by kuldip singh j. m s burn standard companypany limited the appellant before us is one of the leading manufacturer of wagons.
civil appellate jurisdiction civil appeal number 3041 of 1988.
the readymade free supply items are made available to the appellant by the railway board without charging any price.
naresh bakshi and k.d.
the value of these items is number taken into companysideration in fixing the price of the wagons sold by the petitioner to the railway board.
number 181 of 1987.
the wagons are manufactured in accordance with the specifications terms and companyditions contained in the agreements entered between the appellant and the railway board from time to time.
these items are number manufactured by the appellant.
ashok h. desai p. parmeshwaran and a. subba rao for the respondents.
shankar ghosh mrs.
prasad for the appellants.
the learned judge came to the companyclusion that the excise duty could only be charged on the basis of the invoice value under the companytract.
the wagons manufactured and produced by the appellant are primarily supplied to the railway board.
