2005 (2) TMI 729 - AT - Central Excise

Summary

Issues:
Whether the cost of containers in which biscuits are packed should be included in the assessable value.

Analysis:
The appeal involved a dispute regarding the inclusion of the cost of containers in the assessable value of biscuits manufactured by the respondents. The main issue was whether the containers, being durable and returnable, should impact the assessable value. The respondents argued that as the containers were durable and returnable, their cost should not be included in the assessable value. The Commissioner (Appeals) accepted this argument, noting that the containers were returnable and that the previous arrangement with distributors remained unchanged from 1993 and 1995.

Upon review, the Tribunal found no grounds in the appeal memorandum to suggest any change in the arrangement between the respondents and distributors or in the pattern accepted by the department in the past. Since the containers were deemed durable and returnable, the Tribunal upheld the Commissioner's decision that the cost of such containers should not be included in the assessable value of the final products. The Tribunal emphasized that the factual position supported the finding that the containers were durable and returnable, thus legally excluding their cost from the assessable value.

In conclusion, the Tribunal dismissed the appeal by the Revenue, affirming the decision of the Commissioner (Appeals) that the cost of durable and returnable containers should not be factored into the assessable value of the biscuits. The Tribunal's ruling was based on the established factual position and the absence of any evidence to challenge the durability and returnability of the containers. Consequently, the Tribunal upheld the Commissioner's decision and rejected the appeal, maintaining consistency with the previous arrangements and legal principles regarding the assessable value of the goods.