1996 (7) TMI 269

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..... [Order per : Shiben K. Dhar, Member (T)]. These two Revenue appeals are filed against the Order-in-Appeal dated 16th October, 1986 of Collector of Central Excise (Appeals), Bombay. 2. The issue that falls for determination is whether the cost of gunny bags claimed to be durable and returnable is includible in the assessable value of glass bottles. 3. Arguing for the Revenue, the learne .....

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..... th sides. 6. The Hon ble Apex Court in the case of Mahalakshmi Glass Works Pvt. Ltd. held that packing must be one which is returnable by the buyer to the assessee and obviously that must be under an arrangement between the buyer and the assessee. It is not the physical capability of the packing to be returned which is determining factor because, in that event, the words by the buyer to the ass .....

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..... tes to be supplied by the Govt. Milk Scheme or in gunny bags, which would be returned to the supplier after emptying the bags of the bottles ......... This clearly indicates that there was an agreement which stipulated that gunny bags would be returned. In this view of the matter, we are of the view that in the light of contract entered into, an agreement or arrangement clearly emerges which poin .....

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