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TMI Blog1997 (8) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... urned to them and the exclusion of the cost of the packing for the returnable drums is not correct and their value is to be added in assessable value. 2. The learned Advocate Shri P.S. Raman appearing for the appellants at the outset contended that the whole demand is barred by limitation. In this connection, he pointed out that the allegation in the show cause notice with respect to the suppression is as follows :- The fact of collection of the amount of Rs. 239.40 appears to have been suppressed with the intent to evade payment of duty in relation to that amount. It is seen that they collected a total amount of Rs. 5,00,942.98 towards the containers and failed to pay the duty of Rs. 60,113.15 with reference to the abovesaid collectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablished principle as has been held by the Hon ble Supreme Court that in order to invoke the extended period of limitation it is necessary for the department to mention as to what are the facts which are suppressed by the assessee from the knowledge of the department with intent to evade the payment of duty. The principles of natural justice therefore requires all the facts of such suppression may be made known to the assessee by making such allegations in the show cause notice so that the assessee will get an opportunity to rebut these allegations mentioned in the show cause notice. The ground which is mentioned in the impugned order is that at the time of submitting the price list along with contract, the appellants knew or has reason to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statute. It cannot be said that the packing is returnable by the buyer to the assessee unless there is an arrangement between them that shall be returned. (2) Actual return is not relevant. What is necessary is that if the buyer chooses to return the packing, the seller should be obliged to accept it and refund the stipulated amount. (3) Extent of return is also not relevant. (4) The mode of return is a matter of mutual convenience. Whether the packing is returned direct to the seller or through his collection agent, makes no difference." From the above, it follows that there should be an arrangement or a contract between the seller and the buyer for the return of the durable container. The actual return is also not relevant. What ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent between them and the buyers and these price lists were duly approved by the department after looking into the agreement. The agreement clearly contemplates that these containers are returnable. Therefore, it cannot be said that the appellants have suppressed any material fact from the knowledge of the department. They were expected to file the agreement in this regard and the agreement contains all the facts. In these circumstances, we are of the view that no suppression as was mentioned in the show cause notice is substantiated by the department. On the other hand, the order itself goes to show that by producing the agreement, the department was made aware of the collection of the amount in question for the containers and the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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