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TMI Blog2017 (12) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Central Excise Act, duty is required to be paid on the value of the goods supplied. The plastic bottle is of no use without the cap. Hence the cap is not an optional accessory but an essential part of the plastic container - In the case of Sidhartha Tubes Ltd., [2005 (12) TMI 91 - SUPREME COURT OF INDIA], the Hon’ble Apex Court has taken the view, that the value of sockets which were essential for functioning of pipes as it joins the pipes to each other will be includible in the assessable value of pipes. Appeal dismissed - decided against appellant. - E/52801/2016-EX[DB] - A/57374/2017-EX[DB] - Dated:- 26-10-2017 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Technical Member Present Shri S.J. Vyash, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ottle manufactured in the factory, for convenience. He submitted that the value of the bought out items, even if supplied with the manufactured item, are not required to be included for payment of duty. He also relied on the following decisions: i) Neycer India Ltd. - 2015 (320) ELT 28 (SC) ii) Metal Box of India Ltd. - 1983 (13) ELT 956 (Tri) iii) Metal Box of India Ltd. - 1990 (45) ELT A33 (SC) iv) Col Tubes (P) Ltd. - 1994 (72) ELT 342 (Tri) v) Col Tubes (P) Ltd. - 1997 (90) ELT A63 (SC) 5. Ld. DR justified the impugned order. He submitted that the bottle manufactured in the appellant s factory becomes a complete bottle only when the cap is also attached. Since the article supplied to sister concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in another case of plastic cap supplied with aluminum collapsible tube. 7. After going through the above case laws, we find that the present facts are distinguishable. In the case of Neycer India Ltd. (supra) the bought out items were optionally supplied. In the case of Metal Box of India Ltd. (supra) as well as Col Tubes (P) Ltd., the definition of containers as per explanation 1 of the then item 27 of the Central Excise tariff included tubes without the cap also. However, in the present case, we find that the plastic bottle is of no use without the cap. Hence the cap is not an optional accessory but an essential part of the plastic container. In the case of Sidhartha Tubes Ltd., relied by the Revenue, the Hon ble Apex Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct test. We do not find any merit in this argument. We have applied the test of essentiality in several cases, particularly in order to distinguish a component from accessory. [See : Commissioner of Central Excise v. Akay Cosmetics Pvt. Ltd. reported in 2005 (182) E.L.T. 294 Para 45] . According to Chambers Science Technology Dictionary, socket is defined as a pipe end enlarged to pass over a same-sized pipe to make a joint. Therefore, sockets not only contributed to the functioning of the pipes, it constituted a part of m.s./g.i. pipes. As stated, the customer was charged with the price of the socket when the appellant sold the m.s./g.i. pipes with the sockets. Hence, the department was right in including the cost of the sockets ..... X X X X Extracts X X X X X X X X Extracts X X X X
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