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Essel Propack Ltd. Versus Commissioner of Central Excise, Thane

2015 (10) TMI 2068 - CESTAT MUMBAI

Valuation of goods - Non inclusion of packing material - Held that:- special packing provided by them to the buyer is in the nature of secondary packing not includable in the assessable value. In order in appeal the Commissioner has observed that cost of all packing is includable in assessable value. - Since the nature of the special packing, claim to be secondary packing by the appellants, has not been disputed in the order in appeal, it has to be treated as secondary packing. - Since cost of s .....

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For the Respondent : Shri V K Shastri, Asst. Comm (AR) ORDER Per Raju 1. Essel Propack Limited are manufacturers of multilayered plastics collapsible tubes. During the period 1.4.99 to 30.6.2000 they cleared the product to M/s Sunshine Cosmetics Limited, Hyderabad, in the special boxes over and above the primary packing per the agreement with the said party. After receiving the material M/s Sunshine Cosmetics would sell the special packing in the market and remit the sale proceeds to the appell .....

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t of packing material as required under clause (d) of subsection (4) of erstwhile Section 4 of the Central Excise act and hence duty was demandable on the said costs. The duty was confirmed by adjudicating authority as well as the appellate authority. The appellants are in appeal against the order of the appellate authority. 2. Learned Counsel for the appellant argued that the special packing was for the purpose of transport of multilayered plastics collapsible tubes, which are fragile in nature .....

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the cost of packing has not been included in the value of the goods and it needs to be included. He relied on the order in appeal. 4. Perusal of order in appeal shows that the appellants had claimed that the special packing provided by them to the buyer is in the nature of secondary packing not includable in the assessable value. In order in appeal the Commissioner has observed that cost of all packing is includable in assessable value. He has not disputed the claim of the appellant's that .....

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ng is somewhat complex. The new Section 4(4)(d)(i) has made express provision for including the cost of packing in the determination of "value" for the purpose of excise duty, inasmuch as the case of the parties is that the new Section 4 substantially reflects the position obtaining under the unamended Act. We shall proceed on the basis that the position in regard to the cost of packing is the same under the Act, both before and after the amendment of the Act. Section 4(4)(d)(i) reads .....

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isable goods are wrapped, contained or wound." It is relevant to note that the packing, of which the cost is included, is the packing in which the goods are wrapped, contained or wound when the goods are delivered at the time of removal. In other words, it is the packing in which it is ordinarily sold in the course of wholesale trade to the wholesale buyer. The degree of packing in which the excisable article is contained will vary from one class of articles to another. From the particulars .....

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