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2017 (5) TMI 132 - AT - Central ExciseValuation - cost of packing material received free of cost - corrugated cartons - includibility - whether in terms of Rule 6 of Central Excise Valuation Rules, 2000, the cost of such packing material supplied free of cost is to be treated as additional consideration flowing from the buyer to the assessee in relation to sale of the goods, and to be included in assessable value? - Held that: - the respondents have been receiving the packing material viz. corrugated cartons from their buyer on free of cost basis for use in packing of PET bottles/jars manufactured by them. The jars and containers are meant only for carrying the excisable goods manufactured by the respondents. Clearly, these cartons do not render the excisable goods to be marketable and are meant only for transportation - the PET containers are marketable without being put in the corrugated cartons and the ratio of judgement in the case of CCE, Indore Vs. Grasim Industries Ltd. [2014 (4) TMI 650 - CESTAT NEW DELHI] is applicable in the present case where it was held that he cost of only that packing would be includible in the assessable value which is necessary to make the goods marketable and this principle would be applicable while interpreting the provision of Section 4. If some goods are marketable without being put into the containers, the cost of containers including their testing charged would not be includible in the assessable value - appeal dismissed - decided against Revenue.
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