TMI Blog1991 (2) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... on before the Central Government which was transferred to this Tribunal on its constitution. Similarly, Appeal No. 199/82 was filed as revision before the Central Government which was transferred to this Tribunal on its constitution. 3. Mr. Lodha, counsel for the appellants submitted that the appeals should be remanded to the Asstt. Collector for consideration afresh of the eligibility of deduction in the light of the judgment of the Supreme Court in Bombay Tyre International (1983 (14) E.L.T. 1896). He further submitted that one of the deductions relates to the includibility or otherwise of the packing of the goods manufactured by the appellants. He submitted that the authorities below have not considered the includibility or otherwise of the cost of packing in the assessable value. He further submitted that this Tribunal should lay down principles on the basis of which the cost of packing is to be excluded for the purpose of determining the assessable value in the light of various judgments of the Supreme Court namely, Bombay Tyre International - 1983 (14) E.L.T. 1896; Geep Industrial Syndicate Ltd. v. U.O.I. - 1987 (31) E.L.T. 865 (SC) (Civil appeals No. 642-45 of 1982); CCE v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nternational. 6.1 In U.O.I. v. Bombay Tyre International [1983 (14) E.L.T. 1896] the Supreme Court observed as follows :- It seems to us that the degree of secondary packing which is necessary for putting the excisable article in the condition in which it is generally sold in the wholesale market at the factory gate is the degree of packing whose cost can be included in the value of the article for the purpose of excise levy. In other words the test laid down was, is the packing necessary to put the article generally in the market at the factory gate, if it is so, it is to be included otherwise exclude the same. 6.2 The next decision to be considered is the judgment in U.O.I. v. Godfrey Philips India Ltd. [1985 (22) E.L.T. 306 (SC)]. The issue before the court was whether the cost of packing is includible in the value of cigarettes for the purposes of assessment to excise duty. Cigarettes manufactured are packed initially in paper/cardboard packing of 10 20 and these packets are packed together in paper/cardboard cartons/outers. These cartons/outers are then placed in corrugated fibre board containers and it is these fibre-board containers filled with cartons/outers, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is generally sold in the wholesale market at the factory gate which is includible in the assessable value of manufactured product. 7. The next judgment to be considered is the judgment in Geep Industrial Syndicate v. U.O.I. (Civil Appeals No. 642 to 645 of 1982). In this judgment the Supreme Court followed the ratio laid down in Godfrey Philips (supra). Shri Bhagwati, CJ who expressed minority view in Godfrey Philips wrote the judgment in Geep Industrial Syndicate. 8. The next decision to be considered is the judgment in Hindustan Polymers v. C.C.E. [1989 (43) E.L.T. 165 SC]. The issue before the court was whether the cost of containers supplied by the customer is includible in the assessable value of fusil oil and Styrene Monomer. 8.1 Shri Sabyasachi Mukherji, J found that the manufacture of fusil oil and styrene monomer was complete before they are placed in container and the containers were not necessary for completing the manufacture and that 90% of the goods were sold in tankers whereas 10% were sold in packed condition which according to the learned judge establishes that the goods were marketable without being packed or contained in drums or containers and the del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be considered is the judgment in C.C.E. v. Ponds India Ltd. [1989 (44) E.L.T. 185 (SC)]. The facts of the case are that the Ponds India Ltd. manufacture Talcum powder and Face powder. They claimed deduction of cost of packing for transportation in respect of small packings of 15, 18, 20, 30, 40 100 gms. powder ranging from 0.27 paise to 0.76 paise per dozen packing and the same was approved provisionally. The dispute was whether the such packing is includible in the assessable value of the excisable article. Shri S. Mukherjee, J after referring to the judgment in Bombay Tyre International observed : This court observed that the degree of secondary packing which is necessary for putting the excisable article in the condition in which it is generally sold in the wholesale market at the factory gate is the degree of packing whose cost can be included in the value of the article for the purpose of excise duty. He also observed: Therefore, it is clear by virtue of that decision that the cost of packing which is necessary to make the excisable article marketable, i.e. to say in which it is generally sold in the wholesale market at the factory gate is to be included. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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