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2005 (10) TMI 140 - AT - Central ExciseProcess amounting to manufacture or not - Method of Valuation - section 4A of the CE Act of 1944 or not - sale of dandruff shampoo of 200 ml with a free offer of 100 gm face wash gel and dandruff shampoo of 120 ml with a free offer of 50 gm face wash gel - two products would be tied together, a new label could be put to the bound products and the new price was printed on the label - HELD THAT:- The appellants receive the gel and the shampoo in bulk and repack them in retail packages. Thereafter, the shampoo along with the free gel is bound together and the label is fixed on the product. We agree with the contention of the appellant that this process amounts to manufacture as per Chapter Note 5 to Chapter 33. Further, it is seen that both the products are covered under Section 4A and Standards of Weights and Measures Act. The ratio of OSWAL FATS & OILS VERSUS COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH [2003 (1) TMI 180 - CEGAT, NEW DELHI] is squarely applicable, in that case bindis were packed along with soaps for free supply to buyers of soap. It was held that the additional package of bindis had no connection to the price of soap, the price of bindis is not includable in the assessable value of soap. In the SURYA FOOD AND AGRO LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NOIDA [2003 (7) TMI 114 - CESTAT, NEW DELHI], it was held that when selling certain quantities of biscuits, the appellant supplied small quantities of certain other varieties free and in such situation the value of free supplies is not includable in the assessable value. Since the Revenue has not contested that the products in question are covered under Section 4A and Standards of Weights and Measures Act, it is held that the products are assessable under Section 4A. In view of the decided case laws, there will not be any duty liability on the gel supplied free, hence there is no merit in the impugned order - appeal allowed.
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