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TMI Blog1993 (8) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... of by a common order. 2. The Department has come up in appeal on the grounds that the Collector (Appeals) erred in holding that the cost of loss of empty bottles occurring during the return journey of the truck shall be allowed deduction from the price for computing duty and that the transport cost for the return of empty bottles to the factory has to be deducted from the assessable value; that the Collector (Appeals) in coming to the above conclusions has misplaced total reliance on the Tribunal s judgment in the case of M/s. Aqueous Victuals Pvt. Ltd. reported in 1988 (38) E.L.T. 42. 3. Shri A.K. Ganguly, the learned Senior Advocate with Ms. S. Bhattacharya, Advocate appeared for M/s. Mamta Drinks Industries Ltd. The ld. Sr. Advoca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndian Oxygen held that But here the changes like rentals for cylinders and the notional interest income are for ancillary or allied services and that is not an activity of manufacture. The ld. Sr. Advocate argued that on the ratio of this judgment the expenses on loss of empty bottles are for ancillary and allied service and that is not an activity of manufacture and hence cannot be included in the price for computing Central Excise duty. This is further supported by the decision of the Hon ble Tribunal in the case of Aqueous Victuals v. CCE reported in 1989 (38) E.L.T. 42 wherein it was held that rental charges for crates are not includible in the assessable value as such charges are not directly relatable to the cost of manufacture. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate argued that it was an ancillary or allied service and therefore the expenses incurred on this service cannot be included in the assessable value as supply of empty bottles is not a manufacturing activity. The ld. Sr. Advocate argued that in the case of Spring Fresh Drinks v. C.C.E. reported in 1991 (54) E.L.T. 333, the Tribunal held - cost of transportation for bringing back empty crates from buyers premises to the factory of appellants not includible having nothing to do with manufacture of products. Concluding his arguments, the ld. Sr. Advocate argued that he adopts all the pleas made before Collector (Appeals) and that their case was on all fours covered by the decided cases and hence prayed for rejection of Department s appeals. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no dispute that the bottles are durable and returnable and therefore the cost of packing is not includible in the assessable value. The loss of empty bottles is a cost to the assessee. Can this cost be separated from the cost incurred on replacement of bottles? If not, this cost clearly covers the breakages during the return journey of empty bottles. After all nothing which is durable and returnable can last for all time to come. Everything becomes unserviceable because of wear and tear during handling. Therefore, every durable and returnable article of packing comes to an end and consequently its cost also vanishes. As the cost of packing is not includible in the assessable value, we hold that the cost of breakages of empty glass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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