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TMI Blog2016 (4) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... gs supplied by the appellant can be returned and upon such return the value thereof will be refunded to the buyers. The inclusion of the value of the gunny bags in the above situation for determination of the assessable value of the manufactured goods has been considered by this Court in Mahalakshmi Glass Works (P) Ltd. V. Collector of Central Excise, Bombay 1988 (Supp) SCC 601 and Triveni Glass Ltd. V. Union of India & Ors. (2005) 3 SCC 484. 2. Paragraphs 5 and 6 of Mahalakshmi Glass Works (P) Ltd.(supra) may be conveniently extracted herein under: "5. The Tribunal noted that the appellant manufactured glass bottles. It delivered these in two types of packing, namely, in open crates and in cartons and gunny bags. So far as the crates wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no clause about returnability of the cartons and gunny bags. The appellant invited the attention of the Tribunal to the following clause in their standard contract. It read as follows: "6. All packing cases, other than such as may be supplied or paid for by buyer, shall be returnable in good order and condition within 30 days after receipt." 6. The Tribunal was of the view that the above clause related to "cases". It could have meant only the crates which belonged to the appellant and for which the customers had not paid anything. The property in the crates having remained with the appellant all along, the buyers were naturally obliged to return them to their rightful owners. But that was not the case with the cartons and gunny ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept it and refund the stipulated amount. It is held that the question whether the packing is actually returned or not has no relevance. 17. We have considered the submission of the parties. In our view, the law laid down by this Court in Mahalakshmi Glass Works (P) Ltd. is the correct law. There is no necessity that the crates must be actually returned. So long as there is an obligation on the seller to take back the crates, if the buyer chooses to return them, it is sufficient. The term in the contract, set out above, imposes an obligation on the appellants to take back the wooden crates and to pay the stipulated amount to the buyer if the buyer chooses to return them. Wooden crates merely consist of planks of wood which are nailed toget ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) would apply. 6. Specifically we may mention here that we do not find any obligation taken by the appellant to refund the value of the gunny bags to the Buyer in terms of any arrangement between the parties. If the arrangement required in terms of the decisions of this Court in Mahalakshmi Glass Works (P) Ltd. (supra) and Triveni Glass Ltd.(supra) do not exist, we do not see there can be any remand of the appeal for further consideration. 7. The further question raised on behalf of the appellant i.e. that the matter ought to be remanded at least for the consideration of the question of inclusion of the value of the gunny bags supplied/made available by the buyer and the exclusion of the duty element levied on such basis can hardly be app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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