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Challenge to levy and collection of excise duty on packing charges of glass and glassware. Analysis: The judgment involves two writ petitions challenging the excise duty on packing charges of glass and glassware. The company manufactures glass containers and bottles, selling them with or without packing as per customer requirements. The excise authorities demanded duty on packing charges, arguing it is part of the assessable value under the Central Excises and Salt Act, 1944. The company objected, stating that packing charges are not part of the price of excisable articles. The court examined whether excise duty on packing charges is authorized under the Act. The first ground for the levy was that packing is incidental to the completion of manufactured glass containers. However, the court found this argument unsubstantiated, as packing is not integral to the manufacturing process. The authorities failed to provide a valid reason for considering packing as part of the manufacturing process. The court concluded that packing is not ancillary to the manufacture of bottles. Regarding the second ground, the court analyzed Section 4 of the Act, which determines the value of excisable articles for duty computation. The court noted that the assessable value should only include the wholesale cash price of the articles, excluding packing charges. The company sold bottles without packing, and the price list did not include packing charges until authorities insisted. The court ruled that including packing charges in the valuation of excisable articles is illegal and beyond the authorities' jurisdiction. In conclusion, the court allowed both petitions, quashing the demands for differential duty on packing charges. It directed the authorities not to enforce the demands and ordered reassessment of duty without considering packing charges, with a refund if excess amount was collected. The company was awarded costs for the legal proceedings.
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