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TMI Blog1999 (4) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Assessee is a manufacturer of glass bottles. It manufactures bottles according to the designs and specifications supplied by the customers. These bottles are manufactured by moulding and a mould has to be prepared for each particular type of bottle. In some cases the assessee undertook to get the mould manufactured by a third party, and by debit notes, recovered the cost of the moulds from its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that the cost of these moulds had been passed on. He distinguished between a situation where the cost has not been passed on where the value of the bottle cost is of the bottles. The contention in the appeal, which the departmental representative emphasizes, is that the moulds are indispensable for the manufacture of bottles, they are akin to machinery used for such manufacture and that they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... International 1983 (14) ELT 1896 : 1983 ECR 1627D (SC) : ECR C 663 SC supports the department's case. The Court was in that case dealing with expenses incurred in specific manufacture of goods. Further it referred to the expenses incurred by the assessee. It is therefore no support for the proposition for the view that expenses incurred by someone else are to be included. If the customer supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ags etc. packing is not essential and is used only for transport. His conclusion does not follow from the facts. It is difficult to accept that glass bottles are marketable without any packing whatsoever. As they are breakable, it is reasonable to conclude that packing to some extent is required. Therefore that expenditure of packing is essential for the cost of packing which is essential for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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