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TMI Blog2001 (9) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the products for the purpose of levy of Central Excise duty at ad valorem rates. The impugned orders have held that in cases where labels, stickers and printed corrugated cartons were supplied free of cost by the purchasers of the bottles etc., the value of such free supply items should be added to the sale price of the bottles, jars etc. and assessable value fixed including the value of the free supply items. Consequent to such valuations of the goods duty demand of over Rs. 68 lakhs has been confirmed. Penalties have also been imposed. 3. The appellants have challenged the inclusion of cost of freely supplied packing materials in the assessable value of the goods on the ground that such addition is contrary to settled law on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions in favour of the assessee is that of the Tribunal in the case of Jauss Polymers Ltd. v. CCE in final order No. 763/2001, dated 6-7-2001 [2001 (132) E.L.T. 675 (T). With regard to this decision, the submission on behalf of the appellant is that it can be treated only as per incuriam inasmuch as this decision has been rendered without considering the earlier decision of the Tribunal on the subject. 6. As against the aforesaid submissions on behalf of the appellants ld. SDR has submitted that the impugned order and Tribunal's decision in Jauss Polymers case have been correctly rendered as those decisions are based on the Apex Court's judgment in the case of G.O.I. v. MRF Ltd. [1995 (77) E.L.T. 433]. 7. We have perused the reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er by Arvind. The T.V. sets were in such condition at the time of clearance at the factory gate. Admittedly the packing was not of a durable nature. The packing was not returnable by Arvind to the manufacturer, for the simple reason that the packing belonged to Arvind and not to the manufacturer. Ordinarily, since the packing was not of a durable nature and was not returnable, the cost of such packing would be included in the assessable value of the T.V. sets by virtue of the provision in Section 4(4)(d)(i) of the Act. It is the contention of the appellant the cost of the packing is not to be so included since packing materials were supplied free of cost by Arvind and the cost was not met by the manufacturer. This contention is rebutted on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, Central Excise - 1986 (23) E.L.T. 394 and of the Karnataka High Court in Alemblc Glass Industries Ltd. case 1986 (24) E.L.T. 23, held that expression "cost" in relation to packing in Section 4(4)(d)(i) of the Act has a definite connotation and has been used in contradistinction of the expression "value" and the clear implication of the expression "cost" is that only packing cost of which is incurred by the assessee i.e. the seller is to be included. Ranganathan J in the concurring judgment held that cost of packing referred to Section 4(4)(d)(i) of the Act is the cost of packing incurred by manufacturer and recovered by him from the purchaser whether as part of the sale price or separately and cost of packing supplied free of cost by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Apex Court in Hindustan Polymers case is not of avail to the assessee. However, this decision was rendered without taking note of the earlier decision of the Tribunal in the case of Corner Stone Brands Ltd. 9. A perusal of para 8 of the decision of this Tribunal in the Corner Stone Brands Ltd. case makes it clear that the Division Bench reached the finding that cost of freely supplied packing material is not to be included in the assessable value of the goods after considering the decisions of the Apex Court in the cases of Hindustan Polymers and MRF. As has been noted in para 5 of this order the decision in the case of Corner Stone Brands Ltd. was in conformity with the earlier decisions of this Tribunal in several cases that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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