TMI Blog2001 (9) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. 3. Relevant facts of the case are that the electrodes manufactured by the appellants are first put in polythene bags. Those polythene bags are then packed together in cardboard cartons. These cartons are then labelled so as to indicate description, size, brand etc. of electrodes packed in them. Some electrodes are sold at the factory gate in the cardboard carton packing. The remaining are further packed (10 - 16 cartons) in wooden boxes and then transported to different places. Originally the electrodes were assessed to Central Excise duty without including the cost of the wooden boxes in their assessable value. Subsequently, show-cause notices were issued by the Jurisdictional Central Excise Authorities proposing to include the cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons, and the cardboard cartons were in turn packed in wooden boxes and there was no sale without the wooden boxes. The Collector of Central Excise held that the cost of wooden boxes were not to be included in the assessable value. Revenue challenged this decision without success before the Tribunal. The matter was taken up to Apex Court and that Court dismissed the Revenues appeal with the following observations :- "In the facts and circumstances of the case, exclusion of the value of the wooden cases from the assessable value of the goods which include the value of packing in polythene and cardboard cartons, does not require any interference on the test indicated by this court in Government of India v. Madras Rubber Factory Ltd. [1995 (7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Apex Court in the Apar case on this basis. 8. A perusal of the materials on record shows that the appellants were selling part of the welding electrodes at the factory gate in cardboard boxes, i.e. without packing the goods in wooden cases. The Apex Court has considered in detail the scope of the Provision relating to inclusion of cost of packing in the assessable value in the MRF case. Summing up the discussions, the judgment concluded as under :- "The test is whether packing, the cost whereof is sought to be included is the packing in which it is ordinarily sold in the course of wholesale trade to the wholesale buyer. In other words, whether such packing is necessary for putting the excisable article in the condition in which it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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