9911796707
TMI Blog1998 (10) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... reby the latter had modified the price list No. 391 effective from 24-11-1987 filed in Part II filed by the present respondent M/s. Supreme Industries Ltd., C-30 & 31, Phase-II, Noida by adding the cost of art work and cylinder making charges at the rate of Rs. 1 per kg. and Rs. 4 per kg. respectively. In taking the decision he did, the Collector (Appeals) followed the Tribunal's decision in Rexor India Ltd. v. C.C.E., 1991 (52) E.L.T. 392 and held that printing of duty paid coextended Polyethylene Multilayer Film made by them will not attract any excise duty as such printed films fall under Tariff Heading 4901.90 for which the rate of duty is nil. Accordingly he held that the cost of art work and the cost of cylinder making as shown in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-A, dated 3-10-1997 in Impact Containers. On the specific question of inclusion of the cost of cylinders prepared for printing he referred to the following decisions. (i) Shardlow India Ltd. - 1997 (70) ECR 545 (ii) Flex Industries v. C.C.E., Meerut - 1997 (91) E.L.T. 120. 3. Shri B.N. Rangwani, learned Consultant appearing for the respondent opposed the pleas raised in support of the appeal. He stated that the plain plastic film is duty paid on which the printing is done. It remains a plastic film and no further duty is attracted. He referred to Section Note 2 under Section VII. He then referred to the Heading 49.01 the original wording whereof referred to products of paper printing industry which was subsequently amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 49.01 which was exempt from duty. On this reasoning, he held that the cost of art work and the cost of cylinder making shown in the contract cannot be added in the assessable value. 5. The Order-in-Appeal has been challenged by Revenue contending that the proportionate cost of art work and of cylinder making charges are rightly includible in the assessable value of the printed polyethylene film. The Tribunal decision in Rexor India Ltd. - 1991 (52) E.L.T. 392, it has been submitted, was on the question whether metallising and printing of films amount to manufacture and was not on the question of valuation and, hence not applicable to the present case. It is contended that as the goods in the instant case were cleared in the printed fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the goods in question are printed polyethylene multilayer films supplied to R.C.S. Vanaspati Industry. The printed films are used for packing vanaspati after cutting and closing to form pouches. The use is for packaging and accordingly, the product is for packaging. The printing is not the main or only utility factor for the product unlike the printed aluminium labels dealt with in the Metagraphs' case. We accept the contention raised in the appeal that the goods should be assessed to duty with reference to the value applicable in the form in which they are cleared from the factory. On that basis, the proportionate cost of the art work and of the cylinder making charges is to be included in determining the assessable value. 7. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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