2013 (12) TMI 165

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..... ose of avoiding of the glass shifted during transit by placing wooden baton in between the two sheets are required to be added in the assessable value or not, where the goods are delivered at the buyer’s premises – Held that:- The expenditure incurred on this account cannot form part of the value, as it is not a part of primary packing – Relying upon Window Glass Ltd. Vs. CCE [1988 (10) TMI 154 - CEGAT, NEW DELHI] - Deduction on account of Jam packing charges allowed - blocking of loose space between the two glass sheets is transportation essentiality and is more in the nature of the transportation charges - The same cannot be held to be a regular packing of the goods so as to add the value of the same in the assessable value – there was no .....

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..... id to have any nexus with the value of the excisable goods. Revenue in the present case has not alleged or produced any evidence that such excess freight recovery was on account of diversion of the value of the glass sheets. As such we find no infirmity in the impugned order of the Commissioner while dropping the demand on the above account. 5. As regards transit insurance, we find that the Commissioners reliance on the Supreme Court s decision in the case of Escorts JCB Ltd. reported in 2002 (146) ELT 31 (SC) as also another decision of the Supreme Court in the case of Prabhat Zarda Factory Ltd. reported in 2000 (119) ELT 191 (Tribunal-LB) is appropriate. 6. As regards the Laafa charges, we observe that the Commissioner in respect of .....

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..... permissible. Facts in the present case are quite identical. As explained above, jam packing of boxes containing glass sheets (a highly fragile item) is done only to protect the glass sheets from damage while in transit. Accordingly, I hold that noticees are entitled for deduction of Laffa charges in view of the above judgements. 7. As is clear from the above, by allowing deduction on account of Jam packing charges, he had relied upon the precedent decision of the Tribunal. Otherwise also, we find that blocking of loose space between the two glass sheets is transportation essentiality and is more in the nature of the transportation charges. The same cannot be held to be a regular packing of the goods so as to add the value of the same in .....

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