1997 (4) TMI 187 - AT - Central Excise

Summary

Issues:
1. Claim for refund of duty on assessable value.
2. Inclusion of various expenses in the assessable value.
3. Time limitation for filing refund claim.

Analysis:
The appellant, engaged in manufacturing aerated waters, included Rs. 2.85 per crate of 24 bottles in the declared price to be collected from buyers. The dispute pertains to the period from 16-8-1974 to 16-8-1975. The appellant sought a refund of duty amounting to Rs. 5,27,881.70, contending that the amount collected was as freight charges and should not be part of the assessable value. The Tribunal directed the Assistant Collector to allow the refund after excluding transport charges from the assessable value based on a Supreme Court decision. The Assistant Collector then allowed a refund of Rs. 85,922.45 based on various expenses incurred. The appellant sought additional refund for expenses like repair and maintenance of shells, trollies, commission to salesmen, etc., challenging the time limitation for the claim.

The Tribunal found that expenses on repair and maintenance of shells, if related to durable packing, cannot be considered as transport expenses and hence cannot be deducted. However, expenses on repair of trollies, uniform expenses, and commission to helpers involved in transportation are admissible deductions from the assessable value. The Tribunal directed the adjudicating authority to calculate the proportionate duty on these expenses for a further refund. The Tribunal upheld the time limitation on part of the claim as held by the lower authorities.

In conclusion, the Tribunal allowed the appeal, setting aside the orders in relation to the deductions for repair of trollies, uniform expenses, and commission to helpers. The adjudicating authority was instructed to calculate the proportionate duty on these expenses for a refund, provided the appellant furnishes the necessary breakdown figures. The Tribunal affirmed the time limitation on part of the claim, directing the appellant to comply with the adjudicating authority's requirements for a proper refund order.