KELVINATOR OF INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The question involved in the Miscellaneous application (CM No. 3754/86) is whether the value of service contract (alleged <PG>18</PG> by the petitioners to be optional but denied by the respondents) for after sale service can be included in the assessable value for the purpose of Section 4(4)(d) of the Central Excises and Salt Act.

(2.) At one stage, in 1981, the Excise Authorities were taking a view that the same was not includable in the assessable value. Thereafter, in 1983, a sort of instruction was issued inter-departmentally to the Collector (Appeals) to include the said value in the assessable value for the purpose of charge of excise duty.

(3.) It is asserted that the petitioners have been submitting their price lists from time to time and the same were being approved right till end of July, 1986, in these price lists the petitioners did not include the value of the aforesaid four year service contract. At the same time it appears, that the Excise department, inspite of the earlier instructions not to include the said value, had been issui Rng show cause notices from time to time as to why such value should not be included. As many as 13 show cause notices were issued which ultimately Culminated in the passing impugned order of the Assistant Collector demanding the excise duty on the said service contract as being includable in the assessable value under the aforesaid provisions, it is this order against which the appeal was filed before the Collector (Appeals.)