P.C. Jain, Member (T)

1. (Misc. Order No. 7 to 18/1987-A). - In these appeals a common question regarding a liability of duty on the element of selling expenses included in the sale price of the goods namely art silk fabrics falling under Item 22 of the Central Excise Tariff arises. Accordingly, a common order is being issued.

2. The appellant contended before the lower authorities that the selling expenses comprising of the following :-

"Salary & Wages, Advertisement expenses, Bank Charges, Business Promotion expenses, Travelling expenses, Commission to Selling Agents, Brokerage to Selling Agents, Incentive to Customers and Rebate to Customers".

were not liable to duty in view of the judgment of Supreme Court in the case of A.K. Roy and Anr. v. Voltas Ltd. 1977 ELT (3) 177 inasmuch as the said judgment stated that excise duty is leviable only on the manufacturing cost plus manufacturing profit.

3. The lower authorities have not accepted the contention of the appellants.

4. The appellants, keeping in view the judgment of the Supreme Court in Union of India v. Bombay Tyre International Ltd. 1983 ELT 1896 (S.C.) and further clarification by the Supreme Court reported in 1981 (17) ELT