1990 (5) TMI 140 - AT - Central Excise

Summary

Issues:
1. Transfer of revision application to the Tribunal.
2. Inclusion of packing cost in assessable value.
3. Appeal against the order of the Appellate Collector.
4. Reference to previous Tribunal decisions.
5. Remand of the matter to the Assistant Collector.

Transfer of Revision Application to the Tribunal:
The case involved M/s. Bihar Extrusion Co. Pvt. Ltd. filing a revision application to the Additional Secretary, Government of India, Ministry of Finance, Department of Revenue, which was transferred to the Tribunal under Section 35-P of the Central Excises and Salt Act, 1944 for disposal as an appeal.

Inclusion of Packing Cost in Assessable Value:
M/s. Bihar Extrusion Co. Pvt. Ltd. did not include the cost of packing in their assessable value for aluminium extruded shapes and sections. The Assistant Collector and the Appellate Collector of Central Excise held that the cost of packing, specifically hessian cloth, had to be added to the assessable value. The Tribunal observed that the necessity of packing for deliveries at the factory gate was not established and referred to previous decisions regarding the inclusion of packing costs in the assessable value for excise duty assessment.

Appeal Against the Order of the Appellate Collector:
The appellant appealed to the Tribunal against the orders of the Assistant Collector and the Appellate Collector. The appellant's advocate cited a previous Tribunal decision related to the case and requested a remand to the Assistant Collector based on Supreme Court decisions.

Reference to Previous Tribunal Decisions:
The Tribunal referred to its earlier decision in the case of Collector of Central Excise v. M/s. Bihar Extrusion Co. (P) Ltd. and emphasized the importance of determining whether packing was essential for placing goods in the wholesale market at the factory gate. The Tribunal also cited Supreme Court judgments regarding the inclusion of packing costs in the assessable value of goods for excise duty assessment.

Remand of the Matter to the Assistant Collector:
After considering the arguments and previous decisions, the Tribunal set aside the impugned order and remanded the matter to the Assistant Collector for readjudication based on the observations made in the judgment. The appeal was allowed by way of remand, indicating a need for further assessment by the Assistant Collector.