9911796707
TMI Blog1997 (4) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... le on the packed goods which will have to be deducted from the wholesale price of the [packed] goods. Without any special rule or notification to that effect, the duty already paid on the packing material cannot be deducted at the time of clearance of the goods. Thus value of the wrapping paper along with the duty paid on the wrapping paper will have to be included in the value of the wrapped goods which are to be cleared. Appeal allowed. - 1662 of 1990 - - - Dated:- 3-4-1997 - Suhas C. Sen and K.T. Thomas, JJ. [Order]. - In this case the respondent manufactures writing paper. He also manufactures the wrapping paper, which is utilised for wrapping the writing papers sold by him. There is no dispute that the wrapping paper whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods, and not for making the goods marketable should not be included....... The question is not whether these goods could be so sold, but the question is whether these goods are so sold usually and as such used to become marketable in such manner." 2. This principle laid down by Sabyasachi Mukharji, J. was applied in the case of Government of India and Ors. v. Madras Rubber Factory Limited and Ors. - 1995 (77) E.L.T. 433 (S.C.) = 1995 (4) SCC 349. 3. In the instant case, writing paper is being sold in a packet. The value of the packing will have to be included if the packing is done in order to put the goods in a marketable condition for being sold in the wholesale market. It is not the case of the respondent that the goods are ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such packing except the cost of the packing which is of a durable nature and is returnable by the buyer to the assessee. (ii) does not include the amount of the duty of excise, sales tax and other taxes, if any, payable on such goods and, subject to such rules as may be made, the trade discount (such discount not being refundable on any account whatsoever) allowed in accordance with the normal practice of the wholesale trade at the time of removal in respect of such goods sold or contracted for sale." Clause (i) of Section 4(4)(d) makes it clear that value of packing will have to be included in the value of the excisable goods sold in a packed condition by the manufacturer. That, however, does not mean that the tax earlier paid on the w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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