2011 (1) TMI 259 - AT - Central Excise

Assessable value - whether the value of packing material supplied free of cost by the buyer is includible in the assessable value of goods - packing material was supplied free of cost by purchaser for the reason that if the assessees had spent anything for those packing materials, the question of inclusion of their value in the assessable value of goods manufactured by the assessees would not arise as the sale price would include the cost of packing materials purchased order set aside and appeal allowed

Summary

The issue was whether the value of packing material supplied free of cost by the buyer should be included in the assessable value of goods manufactured by the assessees. The appellate tribunal ruled in favor of the assessees, citing apex court decisions that support their claim. The tribunal set aside the demand on packing materials and allowed the appeal.