TMI Blog2023 (3) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... free issue need not be included in the assessable value. The demand of duty alleging that cost of free supply material has to be included in the assessable value cannot sustain and requires to be set aside - Appeal allowed. - EXCISE APPEAL No.41531 of 2013 - FINAL ORDER NO. 40115 / 2023 - Dated:- 7-3-2023 - MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) AND MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL) Mr. M. Karthikeyan, Advocate - For the Appellant Ms. Sridevi Taritla, Additional, Additional Commissioner (A.R) - For the Respondent ORDER Brief facts of the case are that appellants are engaged in the manufacture of wooden crates falling under Chapter 44151000 of CETA, 1985. Based on the intelligence that the appellant was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gobain needed to affix Thermocol and Foam on the wooden crates. Accordingly, M/s.Saint Gobain had supplied such material, namely Thermocol, Foams, Bell pins, Blue ink, BOPP tape clear, Chit protector etc. free of cost under cover of a delivery challan. M/s.Saint Gobain had availed cenvat credit of duty paid on such materials. 3. The free materials so supplied were affixed on the wooden crates by the appellant and were cleared to their customer on payment of duty on the transaction value. The cost of free materials received by them is not to be included in the assessable value. The delivery challans under which the free materials were supplied were closed after despatch of the wooden crates. These wooden crates are used as packing materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her value of free supplies have to be included in the assessable value for payment of central excise duty on the wooden crates cleared by the appellant M/s.Saint Gobain Glass India Pvt. Ltd. The Tribunal in the case of Makwuds India P. Ltd. Vs CCE Chennai-IV - 2018 (6) TMI 707 - CESTAT CHENNAI had occasion to consider a similar issue. The relevant paragraph of the Tribunal decision reads as under : 5. The issue is whether the free issue materials supplied by their customer M/s. Saint Gobain is to be included in the value of wooden crates / finished products by the appellant. The issue stands decided by the Tribunal in the case of Rane Brake Lining cited supra. The Tribunal in the said case discussed as under:- 5. The issue is that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal s decision reads as under : 5. The issue is that the respondents after job work, while clearing the goods to their Principal did not include the cost of free inputs / raw materials supplied. The respondents are engaged in manufacture of automobile parts. In Ghatge Patil Inds. Ltd (supra) the Tribunal has relied upon International Auto Products case to hold that such addition of free supplied parts is not to be included in the assessable value. The same view has been maintained by Apex Court by dismissing the Civil appeal filed by department reported in 2015 (322) E.L.T. A28 (S.C.). In SRF Ltd (supra) the Tribunal was of the view that the entire exercise would be revenue neutral and therefore the demand cannot sustain. This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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