Union Carbide India Ltd. vs Collector Of Central Excise, Calcutta on 25 September, 2003
This view, we have set out above finds support
from decisions in Ashok Layland Vs. CCE Madras,
2002 (146) ELT 503; Union Carbide (India) Vs.
CCE Calcutta, 2003 (158) ELT 15, Burn_ Standard
Company Ltd. Vs. UOI, 1992 (60) ELT 671; CCE
Vs. Dai Ichi Karkaria Ltd., 1999 (112) ELT 353.
The assessable value of the silver should be taken
at Rs. 2500/- per kg. which is the rate at which MOD
used to get the silver from the mint. The price charged
by the appellants was in terms of the contract entered
into by them with MOD. As per the terms of the
contract, MOD was to supply the silver to manufacture
the batteries. Since the stock of silver in the mint
depleted, MOD supplied the old life expired batteries to
retrieve the silver and to use the recovered silver in the
manufacture of new batteries. As per terms of the
contract, the appellants were to give a rebate to the
MOD in the price to be charged per battery and this
was the reason for the difference in prices between the
batteries supplied to MOD and HAL.