Union Of India & Ors. Etc. Etc vs Bombay Tyre International Ltd. Etc. Etc on 7 October, 1983
The Octroi duty in view of the judgments of the Hon'ble Supreme Court in the case of Union of India v. Bombay Tyre International reported in 1983 ELT 1896 and in the case of Assistant Collector of Central Excise v. Madras Rubber Factory reported in 1987 (27) ELT 553 is an allowable deduction. Loading charges incurred inside the factory gate cannot be deducted but loading and unloading charges and delivery charges incurred beyond the factory gate are deductible. Purchase tax is a tax on raw materials and not on the finished goods. It has, therefore, to be included as an element of cost for manufacture of the finished goods. Hence, it is not deductible from the assessable value. We remand the matter to the Assistant Collector with the directions that he should allow the necessary deductions on account of cost of transportation and delivery, turnover tax and octroi duty in view of these judgments. We further direct that the Assistant Collector will grant an opportunity for personal hearing. The appellants will have to furnish within three months the necessary information of expenses actually incurred for the relevant period for getting these deductions. The appellants stated that in respect of loading and unloading charges paid to coolies beyond the factory gate and conveyance charges paid for local deliveries, they did not have receipts from payees but they had their own vouchers. We direct that since these are petty amounts but are obvious expenses, the Assistant Collector may take a reasonable view in the matter. The appellants further stated that the octroi receipts described litharge as Battery Oxide. They claimed that both were one and the same thing. The Assistant Collector may consult some technical authority in the matter and then proceed accordingly. In the result we set aside the impugned order and remand the matter to the Assistant Collector with the direction that he will complete the re-adjudication proceedings within six months from the date of receipt of this order. In the result, the appeal is allowed by way of remand.