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2006 (2) TMI 309 - CESTAT, MUMBAIValuation - demand duty on packing surcharge - expenses for repacking of goods - HELD THAT:- In this case, the goods are not sold when removed from the factory, but are merely transferred to the depot. We are concerned here with those goods which are sold from the depot after repacking into smaller packages. Under Section 4(3)(c)(iii) “place of removal” is defined to mean a depot from where excisable goods are sold after clearance from the factory. Since depot is a place of removal under the law and smaller packages are sold from there only and not from the factory, applying Section 4(1)(a) of CEA, the transaction value of such packages including cost of packing has to be adopted as the assessable value. In our view, since the value can be thus determined under Section 4(1)(a) of CEA, there is no need to take recourse to the Valuation Rules. Interpretation of Rule 7 is also, therefore, not necessary in this case. Accordingly, we order that the extra amount recovered towards cost of packing is to be added to the assessable value but we agree with the lower appellate authority that the value needs to be recalculated by the adjudicating authority treating the amount as ‘cum-duty-price’. Hence, we uphold the remand order and reject the appeal.
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