JUDGMENT

KULDIP SINGH, J.:—M/s. Burn Standard Company Limited, the appellant before us, is one of the leading manufacturers of wagons. The wagons manufactured and produced by the appellant are primarily supplied to the Railway Board. The wagons, are manufactured in accordance with the specifications, terms and conditions contained in the agreements entered between the appellant and the Railway Board from time to time. It is the admitted case of the parties that the Railway Board supplies wheel-sets, axle boxes and various other finished components of wagons to the appellant Which are termed as "free supply items". These items are not manufactured by the appellant. The readymade "free supply items" are made available to the appellant by the Railway Board without charging any price. These items are fitted in the wagons manufactured by the appellant and are ultimately supplied to the Railway Board. The invoice-value of the wagon charged by the appellant from the Railway Board does not include the value of the "free supply items."

2. On the above facts, the short question for our determination is whether the excise duty u/ Ss. 3 and 4 of the Central Excises and Salt Act, 1944 (hereinaft