Judgment

SABYASACHI MUKHARJEE, J.

(1) THESE appeals arise under S. 35-L(b) of the central Excises and Salt Act, 1944 (hereinafter called the Act). The respondents herein M/s Kelvinator of India Ltd. in these appeals manufacture refrigerators. They market these through their four exclusive wholesale dealers, namely, M/s Gem, M/s Leonard. M/s Expo Machinery and M/s Tropicana. The respondents give one year warranty for the complete refrigerator and all parts thereof (except the light bulb and the crisper glass). During this warranty period, they provide free repair and replacement for defects in material and workmanship under normal use and service. This free service is available only within the municipal limits of the area served by an office of the wholesale dealer or the authorised dealer from whom the refrigerator is originally purchased. The respondents include the cost of this one year warranty in the sale price as well as assessable value of the refrigerator. After the free warranty period of one year is over, the respondents offer a four year service contract only for the sealed system or parts thereof. This contract is not free. It is on payment basis. Charges for it du