K.L. Rekhi, Member (T)

1. The appellants were working under valuation procedure prescribed in exemption Notification No. 120/75-Central Excises, dated 30-4-1975 and paying duty on the basis of their invoice value. They manufactured bogies and supplied them to the Indian Railways. The Wheels and Axles used in the bogies had been supplied to the appellants free of cost by the Railways. The appellants did not include the cost of Wheels and Axles in their invoice value on the basis of which they had assessed the Central Excise duty. The lower authorities have held that the cost of Wheels and Axles, which formed part of the bogies, was includible in the assessable value and hence they have confirmed the demand for differential Central Excise duty amounting to about Rs. 6,800/-.

2. The appellants relied on the judgment of the Hon'ble Calcutta High Court in the case of . Burn Standard Co. v. Union of India - 1988 (17) E.C.R. 737 (Cal.) according to which the cost of materials and components supplied free by the customer need not be included in the assessable invoice value under Notification No. 120/75-C.E.

3. The Ld. Representative of the department relied on the judgment of the Hon'ble