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2000 (3) TMI 425

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..... Member (T)]. As this appeal was restored vide our Miscellaneous order No. 720/99 dated 30-7-1999, Ld. Advocate Shri J. Narayanaswamy for appellants and Shri S. Kannan, Ld. D.R. were heard. Appeal impugned Order-in-Original No. 16/86 dated 31-12-1986 of CCE on Show Cause Notice dated 14-5-1986. 2. Briefly, the facts are that appellants manufacture aerated water and fill them in bottles sup .....

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..... ellant at their factory gate, therefore, inter alia, these are to be added to the assessable value of these excisable goods, and the differential duty demand of Rs. 10,24,476.24 raised by above noted show cause notice was confirmed by the order impugned which also imposed a penalty of Rs. 3,07,400/- under Rule 173Q. 3. Heard Shri J. Narayanaswamy, ld. Advocate for appellants who submitted as fol .....

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..... being durable returnable, costs thereof would not be includible in the Assessable value. (vi) Regarding handling (freight) charges, he cites decision of Vijayawada Bottling Co. as in 1997 (94) E.L.T. 433 (S.C.). He also cites the case of Decora Ceramics (P) Ltd. as in 1986 (24) E.L.T. 73 (Tri.) = 1986 (9) ECR 105. (vii) Hiring charges paid by buyer for bottles are not part of manufactu .....

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..... le value for the following reasons :- (a) It has not been shown by the department that these sums, though physically collected by an employee of the appellants, reached directly to the appellants. On the contrary, they were collected thorough invoices of Spencer Co. Ltd. and it would automatically follow that these amounts were their receipts. (b) Mere relationship as exists between .....

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..... ntainers. Appellants sold their goods on condition that buyers supply the containers for filling and same would be returned to them. (e) Since appellants did not provide the transport facilities to the buyers, the goods were sold on FOB ex-factory gate basis. Therefore, the question of transport charges being included does not arise in the normal price at the factory gate. 6. Since the app .....

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