Central Excise - Valuation - Includibility of cost of secondary packing in the assessable value - Central Excise - 1/92

Central Excise - Valuation - Includibility of cost of secondary packing in the assessable value Circular No. 1/92 Dated 20-11-1992 [From F.No. 6/34/92-CX.1] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Valuation - Includibility of cost of secondary packing in the assessable value. The undersigned is directed to refer to Board's instructions F. No. 6/34/89-CX.1, dated 10-11-1989 enclosing therewith a copy of Supreme Court judgment in the Pond's India case, wherein it was clarified that packing which is primarily done or mainly done for protecting the goods and not for making the goods marketable, should not be included for computing the assessable value. The Cost of that much of packings, be they primary or secondary, which are required to make the articles marketable would be includible in the value. How much packing is necessary to make the goods marketable is a question of fact to be determined by application of the correct approach. 2. This issue was raised by Trade in the recent Customs and Central Excise Advisory Council meeting held on 7-11-1992, wherein the trade was informed that the stand of the Department, to follow the ratio laid down in the Pond's India case by the Supreme Court, would be conveyed and reiterated. 3. In view of the above, the instructions as contained in Board's circular referred to above are reiterated. The assessing officers are requested to keep these instructions in view, while dealing with such cases.