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M/s. Shakti Organic Chemical Industries Pvt. Ltd. Versus CCE, New Delhi

2016 (6) TMI 439 - CESTAT NEW DELHI

Valuation - Computation of assessable value - whether cost of the Plastic containers supplied by the Buyers is includible in the assessable value of the product manufactured by the party? - Held that:- On going through the orders passed by the Asstt. Commissioner and the Commissioner (Appeals), we find that the Asstt. Commissioner has relied upon the precedent decisions of the higher authorities in dropping the demand. The Appellate Authority has not disputed the fact that the said decisions rel .....

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me goods are marketable without being put into the containers, the cost of containers including their testing charged would not be includible in the assessable value - Decided in favour of assessee - Excise Appeal No.1771/2008-EX(DB) - Final Order No. 51850/2016 - Dated:- 18-5-2016 - SMT. ARCHANA WADHWA, MEMBER (JUDICIAL) AND SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) For the Petitioner : Shri T.R. Rastogi,Advocate (Adj.request) For the Respondent : Shri S.Nanthuk, Joint CDR ORDER PER ARCHANA WADH .....

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the price of Glycol. 2. Revenue, by entertaining a view that even in such cases i.e. where their customers bring their own plastic containers, the amortized cost has to be added in the assessable value of the Glycol, initiated proceedings against them by way of issuance of show cause notice dated 6.9.2004 raising demand of duty to the extent of ₹ 2.33 lakhs approximately for the period 2001-04. The Original Adjudicating Authority observed as under:- The main issue involved in the subject .....

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bunal and Hon ble Supreme Court wherein the similar issue is settled. I quote gist of some of these judgements as under:- i) In the case of M/s.Packart Glass Vs. CCE, Vadadora - 2002 (139) ELT 393 (T), the Honble Tribunal has held that the cost of the packing supplied by the buyer cannot be included in the value, irrespective of whether it is durable or not. ii) In the case of M/s. Hindustan Polymers Vs. CCE 1989 (43) ELT 165 (SC), the Honble Supreme Court gave a detailed verdict that if the c .....

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h the said order, filed an appeal before the Commissioner (Appeals). The Appellate Authority held that the said decisions relied upon by the Original Adjudicating Authority cannot be held applicable when there was a change in the provisions of Section 4. He further observed that brining of the packing material by the customers themselves amounts to flow back of the money to the manufacturer and as such, it can be concluded that the price was not the sole consideration, in which case the provisio .....

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sions relied upon by the Asstt. Commissioner fully apply in respect of the valuation of the goods where the packing materials itself is being supplied by the customers, but has decided not to follow the same on the ground that the provisions of Section 4 were amended w.e.f. 1.7.2000. 5. However, we find that the very same decisions stand considered by the Tribunal in a recent decision in the case of Commissioner of Central Excise Vs. Grasim Industries Ltd. - 2014 (304) ELT 310 (Tribunal-Delhi) a .....

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