1997 (12) TMI 111 - SC - Central Excise

Summary

Issues:
1. Inclusion of the value of packing materials for levying duty under the provisions of the Act.
2. Method of arriving at the value of chewing tobacco per kilogram under specific Notifications.

Analysis:
1. The first issue pertains to the inclusion of the value of packing materials for levying duty under the provisions of the Act. The Supreme Court referred to a previous judgment where it was held that the value of packing materials should be included to arrive at the assessable value of excisable goods. The Tribunal had directed the exclusion of the value of packing materials, which led to the Revenue's grievance. Relying on the previous judgment, the Court allowed the Revenue's appeals to that extent.

2. The second issue concerns the method of arriving at the value of chewing tobacco per kilogram under specific Notifications. The dispute was whether the value per kilogram of chewing tobacco should be calculated by dividing the total value of the entire package by the total weight of the package, as contended by the assessee, or by dividing the value of the total package by the net weight of the tobacco after excluding the weight of the packing materials, as argued by the Revenue. The Court held that the same method used for assessing the value of goods for levying duty should be applied for the purpose of exemption as well. Therefore, it was decided that the value of chewing tobacco per kilogram should be determined by dividing the total value of the package by the total weight of the package. The Tribunal's contrary view was deemed erroneous, and the order was set aside accordingly. The appeals were disposed of, directing the Assistant Collector to pass appropriate orders in line with the Court's decision.