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2018 (7) TMI 1713 - AT - Central ExciseValuation - inclusion of packing material supplied by customer in assessable value - overriding effect of rule 6 of Valuation Rules on Rule 4 - whether the value of packing material supplied by the customer should be included in the assessable value of the goods manufactured by the appellant? - Held that:- The value of packing material consumed in the production of goods shall be included in the transaction value - The packaging of goods is carried out only after the final product is manufactured. The packaging material cannot be consumed and loses its identity in the manufacture of final product, therefore, the term used 'consumed' in the production means only for 'packing of final product' - the contention of appellant that the packing material which supplied by customer free of cost was used after the manufacture of final product i.e. Metal Container and not consumed in the manufacture is incorrect. Whether Rule 6 can overriding the effect on the section 4? - Held that:- The authority of Rule 6 is flowing from section 4(1)(b) only, therefore, it cannot be said that Rule 6 has overriding effect on the section - in terms of section 4 read with Rule 6 of valuation Rules, 2000, the packing material supplied free of cost by the customer is includable in the transaction value (Assessable Value) and the same will be chargeable to excise duty. Appeal dismissed - decided against appellant.
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