Bhagwati, C. J. - (1.) The above cases are involving a Company known as Madras Rubber Factory Ltd. (popularly known as MRF Ltd.). MRF has four factories Kottayam (Kerala) Madras (Tamil Nadu) Arkonam (Tamil Nadu) and Goa (Union Territory) engaged in the manufacture of automotive tyres, tubes and other rubber factory products. Each of these factories are under jurisdiction of different Assistant Collectors. The 4 proceedings arising for our consideration are as under:(i) Civil Appeal No. 3195/79 is an appeal by certificate filed by the Union of India through the Assistant Collector of Central Excise, Kottayam against the Judgment dated 20th June 1979 of the Division Bench of the High Court of Kerala from Writ Appeal No. 302 of 1978 allowing post manufacturing expenses under the new Section 4 of the Excise Act. This relates to the Kottayam factory. (ii) Civil Appeals No. 4731-32 of 1984 are appeals filed by Union of India through the Superintendent of Central Excise, Kottayam against the Judgment dated I st April, 1976 of the Division Bench of the High Court of Kerala allowing post manufacturing expenses under the old Section 4 of the Excise Act. (iii) SLP (Civil) No. 10108 of 1980 is another appeal of the Union of India against the Judgment of the Additional Judicial Commissioner, Goa, Daman and Diu allowing post manufacturing expenses under the old is Section 4 of the Excise Act in respect of the factory at Goa. In respect of new Section 4, the Union of India and MRG were agreed that the decision in Writ Appeal No. 302 of 1978 being the subject matter of Civil Appeal 3195 of 1979 would be applicable to the factory at Goa. (iv) Civil Appeal No. 793 of 1984 is MRF's Appeal under Section 35L of the Central Excises and Salt Act (as amended) against the order and decision dated 1st February, 1984 of the Tribunal (CEGAT) deciding that the sale of tyres and other rubber products through their 42 Depots throughout India were not retail sales but were in the nature of wholesale sales and MRF was not entitled to deductions under Rule 6A of the Central Excise (Valuation) Rules, 1975 (hereinafter referred to as the "Valuation Rules").
(2.) These proceedings are now arising for our consideration after the pronouncement of the Judgment by this Court in the case of Union of India v. Bombay Tyres International Ltd. (1983) 14 ELT 1896 decided on the 7th October 1983 and the clarificatory order passed by this Court in the game case of Union of India v. Bombay Tyres International Ltd. reported in (1984) 17 ELT 329. This clarification was given by the Supreme Court on 14th and 15th November 1983. Pursuant to hearings held in this Court in several cases relating to post manufacturing expenses and after the latter clarificatory order in the case of Union of India v. Bombay Tyres International Ltd. (supra), the Tribunal (CEGAT) decided the Review Notice and set aside the order of the Appellate Collector on I st February, 1984 and on 9th February, 1984 the Civil Appeal No. 793 of 1984 was admitted. Format orders were passed by this Court in the pending appeals relating to post manufacturing expenses. Even in the present matters format orders were passed on or around 3rd May, 1984. Format orders were also passed in the pending Writ Appeal No. 590 of 1979 pending before the High Court at Madras. In accordance with the format orders and within the time-frame stipulated, amendments to price lists were to be filed by MRF Ltd. The present appeals are now to consider the various deductions claimed by MRF Ltd. and/or disallowed and/or not allowed by the Assistant Collector, or allowed by the Assistant Collector, in the various jurisdictions qua the factories of MRF Ltd. in the cross appeals of the Union of India and the MRF Ltd.
(3.) For the sake of convenience, the deductions arising for consideration of this Court can be summarised as under:- i) TAC/Warranty discount ii) Product discounts iii) Interest on finished goods and stocks carried by the manufacturer after clearance iv) Overriding commission to Hindustan Petroleum Corporation v) Cost of distribution incurred at duty paid Sales Depots vi) Interest on receivables vii) 1% turnover discount allowed to RC Dealers viii) Secondary packing cost on tread rubber ix) Discount to Government and other Departments;