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TMI Blog1997 (2) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... was done only for the purpose of protecting them from damage during the course of transport, i.e., transport after delivery. The 7-ply corrugated cartons have now taken the place of wooden boxes. But for this, there is no change in the factual situation since 1986. In such a factual situation, it would not be permissible for us to arrive at a different conclusion than the one arrived at in 1986. On this ground alone, we hold in favour of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... tional [1983 (14) E.L.T. 1896 (S.C.) = 1984 (1) S.C.C. 467] and Government of India v. Madras Rubber Factory Limited [1995 (77) E.L.T. 433 (S.C.) = 1995 (4) S.C.C. 349], the assessee is entitled to succeed. Sri Gauri Shankar Murthy, learned counsel appearing for the Revenue, however, submitted that according to the principles affirmed by this Court in Madras Rubber Factory after a full consideration of all the earlier decisions, the value of 7-ply corrugated cartons is also liable to be included in the value of the goods packed. 3.Inasmuch as differing interpretations are placed upon the principles affirmed in Madras Rubber Factory, it is necessary to ascertain, in the first instance, the precise principle enunciated in the said decision. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) S.C.C. 369]. It was pointed out that the said decision was rendered by the very same Bench which decided Bombay Tyre International. It was also pointed out that the test evolved by the majority [R.S. Pathak and A.N. Sen, JJ.] and minority [P.N. Bhagwati, CJ.] was identical and that the different conclusions arrived at by them was mainly attributable to the difference in perception of the factual situation [see Para 30]. The Court then referred to the decision in Geep Industrial Syndicate Limited and pointed out again that the factual position in this case too was perceived to be the same as in Godfrey Philips, viz., that the wooden boxes were not necessary for putting the torches and batteries in the conditions in which they are genera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the test evolved in Bombay Tyre International has led to certain further refinement in Godfrey Phillips and Geep Industrial Syndicate and then observed : "...... in judging the condition of packing whose cost is to be included in the assessable value, one should go by the conduct of the parties and the nature of the packing in which the goods generally are - not, can be - placed in the wholesale market.... what is to be really seen is this : What is the condition of packing considered by the manufacturers, having regard to the nature of the business, the type of goods concerned, the unit of sale in the wholesale market and other relevant considerations, to be generally necessary for placing the goods for sale in the wholesale market at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buyer". The same was reiterated employing the words in Bombay Tyre International, to wit : "In other words, whether such packing is necessary for putting the excisbale article in the condition in which it is generally sold in the wholesale market at the factory gate". We think it appropriate to point out that the test evolved by this Court in Madras Rubber Factory should be read and understood in the context of the preceding discussion including the express and repeated affirmance of the test evolved by Mukharji and Ranganathan, JJ. In Ponds India Limited which is, in truth, nearer to the definition the word "value" in Section 4(4)(d)(i) of the Act. The word "necessary" in the test evolved by Bombay Tyre International and as reiterated in M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded. In our respectful opinion, the above is the correct understanding of the principle and the ratio of Madras Rubber Factory. 8.Now coming to the facts of the case before us, we find the factual situation considered by this Court in 1986 in Geep Industrial Syndicate [this very assessee] and the factual situation now obtaining is no different. It was held by this Court in the said decision that packing in wooden boxes was not necessary for putting the articles in the condition in which they are generally sold in the wholesale market at the factory gate and that it was done only for the purpose of protecting them from damage during the course of transport, i.e., transport after delivery. The 7-ply corrugated cartons have now taken the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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