2023 (3) TMI 435 - AT - Central Excise

Under-valuation - non-inclusion of cost of free supply materials in the assessable value for payment of excise duty on wooden crates cleared - HELD THAT:- The issue is whether value of free supplies have to be included in the assessable value for payment of central excise duty on the wooden crates cleared by the appellant M/s.Saint Gobain Glass India Pvt. Ltd. The Tribunal in the case of M/S. MAKWUDS INDIA P. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI - IV [2018 (6) TMI 707 - CESTAT CHENNAI] had occasion to consider a similar issue where it was held that while clearing the goods to their principal, the cost of free issue need not be included in the assessable value.

The demand of duty alleging that cost of free supply material has to be included in the assessable value cannot sustain and requires to be set aside - Appeal allowed.