TMI Blog1971 (9) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... The Company which is incorporated under the Companies Act, having its registered office at Alembic Road, Baroda, carries on the business of manufacture and sale of glassware in its factory at Whitefield, Bangalore. Glass and Glassware are chargeable with ad valorem duty of fifteen per cent as specified under Item 23A of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as "the Act"). The duty is paid at the said rate on the wholesale price of the articles, as per its price list approved in advance by the excise authorities. For the period 1-3-1966 to 31-1-1968, the Company paid duty on the articles manufactured by it as and when they were released for sale under permits issued by the authorities under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant the bottles in carton packing. The Company does not manufacture the packing materials but buyers them from other dealers. The customers who buy the bottles in grass and gunny packing, are not charged anything extra for packing but those who insist on carton packing, are charged the actual cost of the packing materials. Even this is not charged if the buyers themselves supply the cartons for packing. In paragraph (8) of the affidavit, in support of Writ Petition No. 3436 of 1970, it is stated that Messrs Orient Pharma (P) Ltd., and Messrs. Sri Balaji and Sons, Bombay, supply the carton packing at their cost and all that the Company does is to put the bottles in those carton packing. The said buyers are not charged anything extra towards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... need not trouble us much. The assessing authorities have not dealt with this question specifically. All that the Assistant Collector has stated in his order dated 8-7-1968 is that the bottles in question are in a packed condition at the time of the removal from the bonded house and therefore the goods cannot be said to be complete manufactured products without packing. It is further stated that some of the pharmaceutical concerns insist on the bottles being packed in carton packing. No other reason has been given either by the Assistant Collector or by the Collector of Central Excise. The mere fact that the bottles are released in a packed condition, does not indicate that packing is a process incidental to the completion of the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of the excisable article for the purpose of computation of duty. `Glass and Glassware' which we are concerned are excisable goods chargeable with duty at a rate depending upon the value of the articles. According to Section 4, such value shall be deemed to be the wholesale cash price for which an article of the like kind and quality is sold or is capable of being sold at the time of the removal of the articles chargeable with duty from the factory or any other premises of manufacture. The value of the excisable article, therefore, is the wholesale cash price for which an article of a like kind and quality is sold or is capable of being sold at the time of the removal of the article chargeable with duty from the factory or any other pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r judgment, the demand and collection of duty of excise on the packing charges of the bottles is wholly unauthorised. ***** 15. In the result, we allow both the petitions. In writ petition No. 548 of 1970, we issue a writ in the nature of certiorari quashing the orders dated 24-1-1970 (Annexure I) and 26-6-1968 (Annexure II) made by the respondents 2 and 3 and further issue an order directing them not to enforce the demand against the petitioner for payment of Rs. 19,889.93 P. by way of differential duty for the period from 1-3-1966 to 31-1-1968. 16. In writ petition No. 3436 of 1970, we think it is not appropriate to grant the relief prayed for in the petition. The assessing authority under the Act has to re-assess the value of the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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