9911796707
TMI Blog2003 (1) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... and of ₹ 54,30,713/- and imposing a penalty of ₹ 41 Lakhs under Rule 173Q of the Central Excise Rules and also directing the appellants to pay interest at the rate of 20% under Section 11AB of Central Excise Act, 1944. The main issue involved is whether the value of Plastic Caps is includible in the assessable value of the Tubes manufactured and cleared by the appellants. In the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 655/46/2002-CX dt. 26.8.2002. The following case laws have been relied upon by the appellants in support of their submissions: - 1) Metal Box of India Ltd. v. Collector MANU/CE/0073/1983 Apex Court in 1990 (45) ELT (956). 2) Col-Tubes (P) Ltd. v. Collector 194 (72) ELT (342) (T) affirmed by Apex court in 1997 (90) ELT (A63). 3) Shriram Bearings Ltd. v. CCE 1997 (91)ELT (255) (SC) 4) P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cap is only a component of the Tube and therefore, its value has to be included in the value of the tube. He relies on the ratio of the Apex Court judgement in the case of UOI v. J.G. Glass Industries Ltd.. He further states that valuation and classification are entirely different issues and that valuation has to be done following the aforesaid decision of the Apex Court. He also contends that sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory gate is the printed bottle. As such, we are of the view that this decision of the Apex Court provides a direct answer to the issue involved in the impugned case. Accordingly where the plastic caps are fitted to the tubes before removal from the appellant's factory, duty is to be paid on the total value of the tubes inclusive of the value of the plastic caps. 5. As regards the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of clearance effected after 28.9.1996. Since the clearances in the instant case, took place during the period March 1990 to September 1994. On interest can be charged under the said Section 11AB . We order accordingly. 7. The appeals are dismissed except for the modification in respect of penalty and interest as indicated above. (Pronounced in Court) - - TaxTMI - TMITax - Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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