2001 (9) TMI 475

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..... ication Order Nos. 330-331/2000, dated 18-10-2000 held that the cost of packing is includible in the assessable value following the decision of the Supreme Court in Government of India v. M.R.F. LTD., 1995 (77) E.L.T. 433 (S.C.) and Decision of the Tribunal in Moped India LTD. v. C.C.E. 1991 (56) E.L.T. 241 (T); that, however, Commissioner (Appeals) allowed the deduction of packing charges from the assessable value holding that the packing was only for safety during the transportation of goods. The learned S.D.R., further, mentioned that the cost of packing is includible in the assessable value as the Respondents were selling Motor Cycles in a packed condition at the factory gate; that as per Section 4(4)(d)(i) of the Central Excise Act val .....

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..... sold in the wholesale market at the factory gate. If it is, then it is liable to be included in the value of goods and if it is not, then the cost of such packing has to be excluded. 3.2 He further submitted that the Supreme Court in Para 3 of the MRF decision has clearly held that Packing which is primarily done or mainly done for protecting the goods, and not for making the goods marketable should not be included . He, therefore, contended that it is a settled position of law that if packing is done only with the aim of smooth transportation and packing is not necessary for putting the excisable goods in wholesale market, the packing cost will be deducted from the assessable value. He relied upon the following decisions :- (i) .....

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..... of the goods; and if it is not, the cost of such packing has to be excluded. The Respondents are removing their Motor Cycles from the factory to their Depot in packed condition. Accordingly the cost of packing is to be included in the assessable value. The ratio of the decision relied upon by the learned Advocate for the respondents is not applicable to the present matter as the facts are different. In P.I.B. Co. case, the wooden crates were used for packing Slagwool only at the option of buyers from far of places. No such situation exists in the present matter as Motor Cycles are removed to Depot in packed conditions. Further in Bakeman s Home Product case, glucose biscuits in sizeable quantity were sold in wholesale at the factory gate .....

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