9911796707
TMI Blog1990 (9) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... nd claimed the benefit of concessional assessment at the rate of 15% in terms of Notification 35/79 on the plea that the value of the branded chewing tobacco did not exceed Rs. 10 per kg. The said Notification is reproduced below :- In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules 1944, read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Govt. hereby exempts chewing tobacco of the description specified in column (1) of the Table hereto annexed and falling under sub-item 11 (5) of Item No. 4 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from so much of the duty of excise leviable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regards the point as to whether gross weight or net weight is to be taken for the purpose of determining the value of jarda per kg. I find that this question is now insignificant in view of the fact that it has been decided to include post manufacturing charges in the declared assessable value, as a result of which, the jarda becomes assessable at higher rate of 10% irrespective of the fact whether the gross weight is taken into consideration or net weight, because the ......, whether its gross weight is taken or net weight taken for ascertaining the assessable value. 4. On appeal, the Appellate Collector held that post-manufacturing charges were not includible when charges are optional and only actual charges are recovered when factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a nexus between the value taken at that stage and the excisable product. It is possible at that stage to arrive at the value per kg. of the product with certainty without any anomalous results. Therefore, in the circumstances of this case, following the ratio of the judgment of the Hon ble Supreme Court, we hold that taking the value of the package as it moves in the market stream as the basis, the value of the tobacco should be arrived at for notification purposes after abating therefrom the value of the polythene, gunny bags, cartons so that the value of the chewing tobacco in the primary packing bearing the brand is obtained. This value should be divided by the total weight of all the branded packets in which the tobacco is packed and va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... net) which was not raised before it and only upheld the orders relating to inclusion of PME in the assessable value. At this stage it is pertinent to point out that para 4 of the review show cause notice reads as - Since merely by addition of these charges which were recovered over and above the price printed on the packets, the assessable value of the Jarda per kg. exceeded Rs.10/- for the purpose of exemption under notification No. 20/75, the Asstt. Collector did not go into the question whether the weight of the paper wrapper was to be excluded for the purpose of computing the value per kg. of the Jarda which clarifies and amplifies the stand of the appellants that the question of weight was not the subject-matter of the dispute be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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