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TMI Blog2018 (7) TMI 1713X X X X Extracts X X X X X X X X Extracts X X X X ..... the production means only for 'packing of final product' - the contention of appellant that the packing material which supplied by customer free of cost was used after the manufacture of final product i.e. Metal Container and not consumed in the manufacture is incorrect. Whether Rule 6 can overriding the effect on the section 4? - Held that:- The authority of Rule 6 is flowing from section 4(1)(b) only, therefore, it cannot be said that Rule 6 has overriding effect on the section - in terms of section 4 read with Rule 6 of valuation Rules, 2000, the packing material supplied free of cost by the customer is includable in the transaction value (Assessable Value) and the same will be chargeable to excise duty. Appeal dismissed - decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saction value which is paid or payable against the sale of the goods shall be the assessable value. It also submitted that the board s circular which is contrary to section 4 cannot prevail. We reproduce the section 4 which is effective from 01.07.2000 and relevant in the present case as under: Section 4 1[4. Valuation of excisable goods for purposes of charging of duty of excise.- (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall- (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of goods are not related and the price is the sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds shall be deemed to be the aggregate of such transaction value and the amount of money value of any additional consideration flowing directly or indirectly from the buyer to the assessee. Explanation 1 . - For removal of doubts, it is hereby clarified that the value, apportioned as appropriate, of the following goods and services, whether supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or payable, shall be treated to be the amount of money value of additional consideration flowing directly or indirectly from the buyer to the assessee in relation to sale of the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. A takes 50% of the price as advance against these goods and there is no sale of such goods to any other buyer. There is no evidence available with the Central Excise Officer that the notional interest on such advance has resulted in lowering of the prices. Thus, no notional interest on the advance received shall be added to the transaction value. From the plain reading of Rule it can be seen that the value of packing material consumed in the production of goods shall be included in the transaction value. The appellant also made submission that the packing material which supplied by customer free of cost was used after the manufacture of final product i.e. Metal Container and not consumed in the manufacture. In this regard we are of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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