KIRLOSKAR BROTHERS LTD., DEWAS (M.P.) versus UNION OF INDIA AND ORS.

KIRLOSKAR BROTHERS LTD., DEWAS (M.P.) versus UNION OF INDIA AND ORS.

Excise duty paid on electric motors used as a component in the manufacture of pumps is not deductible from the assessable value of pumps under Section 4 of the Central Excises and Salt Act, 1944; only duty payable on the pump at the time of removal is deductible. Trade discount is deductible only if uniformly given to wholesalers who do not provide after sales service.

Parties
Appellant: Kirloskar Brothers Ltd., Dewas (M.P.); Respondents: Union of India and Ors.
Jurisdiction
India
Judgment Date
10 March 1992
Procedural Posture
Civil Appeal / Appeal From Madhya Pradesh High Court Decision in Article 226 Proceedings
Outcome
Appeal dismissed
Legal Topics
Excise Duty, Assessable Value, Trade Discount Deduction, Duty on Component Parts, Central Government Review Under Section 36(2)
Excise Law Taxation Law Excise Duty Assessable Value Trade Discount Deduction Duty on Component Parts Central Government Review Under Section 36(2)

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Parties

Kirloskar Brothers Ltd., Dewas (M.P.)

Appellant

Union of India and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Madhya Pradesh High Court Decision in Article 226 Proceedings

Legal Issues

  1. 1 Whether excise duty paid on electric motors is deductible from assessable value of pumps
  2. 2 Whether trade discount given to distributors and wholesalers is deductible from assessable value

Ratio Decidendi

Excise duty paid on electric motors used as a component in the manufacture of pumps is not deductible from the assessable value of pumps under Section 4 of the Central Excises and Salt Act, 1944; only duty payable on the pump at the time of removal is deductible. Trade discount is deductible only if uniformly given to wholesalers who do not provide after sales service.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs