9911796707
TMI Blog1997 (4) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... tor of Central Excise v. M/s. Ponds India Limited - 1989 (44) E.L.T. 185 (S.C.) = 1989 (4) SCC 759. Sabyasachi Mukharji, J. (as His Lordship then was), expressed the view :- "In my opinion, the views expressed by the majority of the judges in Godfrey Philips case were in consonance with the views of this Court in the Bombay Tyre International case. The question is not for what purpose a particular kind of packing is done but the test is whether a particular packing is done in order to put the goods in the condition in which they are generally sold in the wholesale market at the factory gate and if they are generally sold in the wholesale market at the factory gate in certain packed condition whatever may be the reason for such packing, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the wholesale market. In the facts of this case and having regard to the principle laid down by Mukharji, J. in the aforesaid case of M/s. Ponds India Limited, the value of the wrapping paper will have to be added to the value of the writing paper sold by the manufacturer. 4. On behalf of the manufacturer, a point has been taken that although the value of the wrapping paper may be included, the manufacturer is entitled to claim relief on account of the duty which was already paid on this wrapping paper. The wrapping papers were not bought from the market, but were manufactured by the manufacturer himself. When he manufactured the wrapping paper even though for internal consumption, he paid duty. Thereafter the wrappi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty payable at the time of clearance of the goods will have to be excluded from the wholesale price of the goods. The value of the goods as defined in Section 4(4)(d)(i) is the "normal price" which means the price at which such goods will be ordinarily sold by the assessee to a buyer in course of wholesale trade. This price will include the duty payable on such goods at the time of removal of the goods. If the manufacturer has utilised duty paid inputs for manufacturing the goods or has utilised duty paid wrapping paper for packing the goods before delivery, no deduction of the duty already paid on the inputs or the packing can be allowed under Section 4(4)(d)(ii). The duty will have to be levied on the packed goods at the time of removal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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