2000 (5) TMI 1092 - AT - Customs

Summary

Issues:
1. Inclusion of P-41 packing charges in the assessable value of rolled products of iron and steel.

Analysis:
The primary issue in this judgment revolves around the inclusion of P-41 packing charges in the assessable value of rolled products of iron and steel. The Commissioner (Appeals) had allowed the packing charges and haulage charges, stating that the packing was done as per railway regulations and not necessary for selling the goods from the factory gate. The Revenue, however, contended that the packing charges should be included in the assessable value as they were done at the instance of the railway authorities, not the buyer, and thus not deductible under Section 4(4)(d)(i) of C.E.T.A., 1944. The Revenue referred to the statutory requirement for P-41 packing by railways for flat products of iron and steel, emphasizing that the packing charges were collected from buyers even though the packing was mandatory. The Tribunal noted that the packing was specific to railway transportation and not essential for selling goods at the factory gate, citing the Supreme Court's precedent that only packing necessary for market delivery should be included in assessable value. Additionally, the Tribunal referenced a previous decision where it was held that P-41 packing charges for goods transported by railways, as per railway regulations, should not be part of the assessable value. Consequently, the Tribunal rejected the Revenue's appeals, aligning with the previous ruling and emphasizing that the P-41 packing charges were not required to be included in the assessable value of the final product.