9911796707
TMI Blog1988 (10) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... izes and they filed a price list for approval of the assessable value in terms of Rule 173(C) read with Section 4(l)(a) of the Central Excises and Salt Act, 1944. The appellants declared the price in the price list in columns 3 4 of the proforma as the price at which they ordinarily sold the goods in the course of wholesale trade and showed in columns 5 and 6, the packing, namely, the carton, the price of which was not included in the price declared in column 3 4. The said price list was approved by the concerned Assistant Collector with the following endorsement: C. No. V129A/17/34/79 *The assessable values as shown in col. 12 are approved after adding cost of packing shown in col. 6. Abatement cost packing is not allowed. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice was issued to the respondents. The reasons given for taking up the matter for revision are in para 4 of the said show cause notice and reproduced below for convenience of reference: The Central Government are tentatively of the view that the corrugated board carton packing which is invariably done in respect of all the refrigerators is not in the nature of secondary packing so as to justify exclusion of their value for determining the value of refrigerator within the meaning of Section 4 of Central Excises and Salt Act, 1944 inasmuch as the refrigerators have invariably been sold in packed condition both by the assessee and his wholesale buyers and, therefore, satisfy the definition of packing as given in the explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned JCDR, on behalf of the Appellant Collector, pleaded that the respondents filed a price list on 5.7.1979 and the same was approved by the Assistant Collector on 8.11.1988 with the endorsement for the inclusion of the cost of the cartons in the assessable value. He pleaded that the goods were sold with the carton which was described as secondary packing by the respondents in the proceedings before the lower authorities. He pointed out that there was no scope for exclusion of cost of secondary packing unless the same was of durable and returnable nature. He pleaded that since the goods were sold with carton, the cost of the same was includible as held by the Tribunal in the case of Devi Dayal Industries Ltd. v. C. C.E., New Delhi . He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal 1983 E.L.T. 1896 and that in the case of Godfrey Philips India Ltd. Others [1985 (21) E.L.T. 306], referred to supra. He pleaded that earlier the appellants used to sell the refrigerator with an inner packing and wooden case and the cost of the wooden crate was allowed abatement from the assessable value and now instead of using the wooden crate, they were using the card board carton as packing. It was pointed by the bench that there is nothing on record to show that cost of the wooden crates had been allowed abatement. He pleaded that for the purpose of his submission he relies on the findings of the Collector (Appeals). He pointed out that there is no allegation that the findings of the Collector are perverse or wrong nor there is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king claimed to be there to ascertain as to whether it would be such a packing in which ordinarily the goods could be sold at the factory rate in the course of wholesale trade. In the proceedings before us also, we have observed there is no order in the original with details of the nature of the packing and only the endorsement on the price list is the one which constitutes the original authority s order and this gives no information about the polythene packing. The Appellate Collector has held on the facts as set out in the appeal memorandum before him that the corrugated cartons constitute secondary packing and has without giving any reasons stated that the cost of the secondary packing is not required to be included in the assessable val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld was such that it was necessary for putting the articles for being sold in the wholesale market or not. There is no evidence even on record as to the nature of the polythene packing or whether it was such a packing that the goods could be sold in the wholesale market in that packing. 12. We observe that the Hon ble Supreme Court in the case of Assistant Collector v. MRF have held in the case of tread rubber that inner polythene packing in which the tread rubber was put could not be taken to constitute packing for putting the goods in the wholesale market stream and in that context it has been held the cost of carton which claimed as secondary packing is includible for the purpose of assessable value. It is thus seen in each case, the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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