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TMI Blog1985 (7) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ties of glass manufactured by the petitioner were sold. The petitioner stated that the price list included the cost of ordinary frame packing but did not include the cost of special packing which was provided at the request of and on account of the buyers for avoiding breakage in transit. The petitioner also declared that forwarding charges and/or charges for providing planks and jam packing were also separately realised but it from the buyers where such services were rendered at the request of and on account of the buyer for the purpose of transportation of the goods. The petitioner claimed that the cost of special packing as well as forwarding and other expenses incurred in connection with transportation of the goods from the factory of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho dealt with the excise affairs of the petitioner company, Sri A.N. Singh, was on long leave due to the death of his father at that time. This was the only adjournment the petitioner had prayed for. In all fairness, this adjournment should have been allowed. 5. On merits, the petitioner's case is that the impugned order was on the face of it erroneous. In that the order was passed on the assumption that all-packing charges which are not of durable nature and returnable must be included by virtue of provisions of Section 4(4)(d) of the Act. 6. Section 4 of the Act lays down the method of valuation of excisable goods for the purpose of levying of excise duty. The valuation has to be done under Section 4(1)(a) on the basis of the normal p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the factory gate and to the buyers in Calcutta. But where goods have to be dispatched to far away places, special packings are provided at the request of the buyers and on their account. The special packing that is provided at the request of buyers cannot come within the mischief of Section 4(4)(d) of the Act. In my judgment, there is considerable force in this contention of the petitioner. In the case of Union of India and others v. Bombay Tyre International Limited A.I.R.1984 S.C. 420= 1983 (14) E.L.T. 1896 the Supreme Court pointed out: "It seems to us that the degree of secondary packing which is necessary for putting the excisable articles in the condition in which it is generally sold in the wholesale market at the factory gate i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory premises." 10. My attention was also drawn to the judgment of the Bombay High Court in the case of Godrej and Boyce Manufacturing Company Private Limited, Bombay and another v. Union of India and others 1984 (18) E.L.T. 172 (Bom.) where it was held by Manohor J. that wholesale dealers In India cannot be considered as belonging to different classes simply because they are located in different towns or factories. It was held that refrigerators were sold in the wholesale market at the factory gate in Bombay. The cost of packing, whether primary or secondary, which had to be included in the assessable value was the packing in which the refrigerators were sold in the wholesale market at the factory gate. The packing and also the fitme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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