9911796707
TMI Blog2001 (7) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... ial which is supplied by the customers is not includible in the assessable value of the pet jars; that the Apex Court in the case of Hindustan Polymers v. C.C.E. - 1989 (43) E.L.T. 165 (S.C.) observed that where the assessee has sold the goods in bulk and delivered to the factory gate also in drums, the cost of packing materials supplied by the buyer is not includible; that the Court also held that the word cost has a definite connotation and is used generally in contradiction to the expression value ; that the clear implication of the use of the word cost is that only packing cost which is incurred by the assessee is to be included, that if the word cost is interpreted to include the cost of packing supplied by the customer, it would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s manufactured by the appellants is cartons; that the Commissioner has given the very clear and specific findings in the impugned order that cartons are their normal packing which has been accepted by the officials of the appellants as well as their customers; that the ratio of the decision in the case of Hindustan Polymers is not applicable as the goods in the said case were sold in tankers without being packing or contained in drums. The learned SDR, further, mentioned that the cost of, labels is to be included in the assessable value as the process of affixing labels on pet jars is incidental or ancillary to the manufacture of jars. He relied upon the decision of the Apex Court in the case of Siddhartha Tubes Ltd. v. C.C.E. - 2000 (115) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment of India v. Madras Rubber Factory Ltd. - 1995 (77) E.L.T. 433 (S.C.) by laying down the test for including the packing charges in the assessable value as under :- The Test is : Whether packing, the cost whereof is sought to be included is the packing in which it is ordinarily sold in the course of a wholesale trade to the wholesale buyer. In other words, whether such packing is necessary for putting the excisable article in the condition in which it is generally sold in the wholesale market at the factory gate. If it is, then its cost is liable to be included in the value of the goods, and if it is not, the cost of such packing has to be excluded. 6. On a query from the Bench, the learned Consultant fairly mentioned that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are essential for marketing of the fan and though an electric fan may perform its essential functions without affixation of the name plate but that is not enough because electric fan does not become marketable product without affixation of name plate . The learned SDR has relied upon the decision in Siddhartha Tubes case wherein the Supreme Court laid down the law that cost of the process, even if not amounting to manufacture, has to be included since it adds to the intrinsic value of the product. 7. We do not find any substance in the submission of the learned Consultant that no penalty is imposable as issue was not clear to the Government, merely because an explanation has been provided in Central Excise (Valuation) Rules, 2000 about ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
