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TMI Blog1987 (1) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... hri R.K. Jain, Consultant, for the Respondents. [Order per : K.L. Rekhi, Member (T)]. - A common issue is involved in these two appeals and they were argued before us together. This common order will dispose of both of them. 2. Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944 allows exclusion of cost of packing from the assessable value of goods if the packing is of a durabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1987 (27) E.L.T. 746, [Appeals ED(SB)(T) No. 266/1977-A, 253/78-A, 1432-33/1984-A, 326/ 1979-A, 1008/1980-A, 263/1980-A and 111/1985-A; Orders No. 917 to 924/1986-A], After considering the judgments of the Supreme Court and various High Courts on the point, the larger Bench has summarised the conclusions in paragraph 18 of the aforesaid order. We reproduce this paragraph :- After the arguments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under :- (1) Though the word returnable used in Section 4(4)(d)(i) is distinguishable from returned , mere capability of being returned is not enough. Returnability should be a term of sale either by contract between the buyer and the seller or by statute. It cannot be said that the packing is returnable by the buyer to the assessee unless there is an arrangement between them that it shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for return of the drums. on the contrary, from the fact that in about 70% cases, where drums were actually returned, the department allowed the exclusion, it is quite evident that the department was satisfied as to the existence of such contract/agreement/arrangement. This conclusion is also supported by endorsement of the remark returnable drums on the Central Excise Gate Passes covering the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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