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TMI Blog1998 (7) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... buyers as cost of packing an amount less than the actual cost of packing and added to the assessable value only the lesser amount collected from the buyers and not the higher amount incurred as cost of packing. Three show cause notices dated 6-4-1993, 17-6-1993 and 9-12-1993 were issued in respect of different periods alleging the above facts and stating that the entire cost of packing should have been included in the assessable value and proposing demand of differential duty on the difference between the actual cost of packing and the amount of charges collected from the buyers. The notice also proposed imposition of penalty. Though appellant resisted the notices, the Assistant Collector con firmed the demands and imposed penalty of Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and is returnable by the buyer to the assessee. The Court drew a distinction between cost on one hand and value on the other and since the packing did not cost any money to the manufacturer, held that the cost of such packing cannot be included in the assessable value. 4. Shri S.K. Srivastava, SDR relied on the following observations contained in the leading judgment at para 12 :- The word cost has a definite connotation, and is used generally in contradistinction of the expression value . Thus, the clear implication of the use of the word cost is that only packing, cost of which is incurred by the assessee, i.e., the seller, is to be included. The use of the expression cost could not obvious ly be by way of reference to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the packing is of a durable nature and is returnable by the buyer to the manufacturer. The requirement of Section 4(4)(d)(i) that value of excisable goods would include the cost of such packing has been understood in the above judgments as meaning that the value would include the cost of packing in curred by the manufacturer and recovered from the buyer. The matter has been further clarified in the above quoted observations in Para 21 to the effect that what is to be added to the price is the cost of packing to the buyer. It must thus follow that irrespective of the manufacturer incurring a particular cost for the packing materials, it is the cost of packing to the buyer, i.e., the cost as charged to the buyer, meaning the packing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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