TMI Blog2005 (2) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... f wood which are nailed together. Therefore, even if they are dismantled by the buyer and the planks are returned to the Appellants the Appellants would be in a position to use them again. In our view, the High Court was wrong in holding that the wooden crates are not durable or returnable. The answer to the question therefore has to be in favour of the Appellants. It is held that, in view of the specific term in the bills/invoices, the wooden crates are durable and returnable packing whose costs is not to be included in the value of glass sheets. Appeal allowed of assessee. - Civil Appeal No.1115 of 2000 - - - Dated:- 22-2-2005 - S.N. Variava, Dr. A.R. Lakshmanan and S.H. Kapadia, JJ. S.K. Bagaria, Senior Advocate (Tarun Gulati and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to any excisable goods, - where the goods are delivered at the time of removal in a packed condition, includes the cost of such packing except the cost of the packing which is of a durable nature and is returnable by the buyer to the assessee. Explanation.- In this sub-clause, "packing" means the wrapper, container, bobbin, pirn, spool, reel or warp beam or any other thing in which or on which the excisable goods are wrapped, contained or wound. xxx xxx xxx xxx xxx xxx 4.Thus, as per the statutory provision the cost of packing is includible in the value of the goods unless the packing is of the durable nature and is returnable by the buyer to the assessee. 5.In this case the Appellants filed a price li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the wholesale trade. The High Court also held that the wooden crates were not durable and returnable. Thus this Appeal. 9.Two questions arise for consideration by us : (i) Whether the costs of wooden crates is includible in the value of glass sheets; and (ii) Whether the wooden crates can be said to be "durable and returnable packing". 10.We have today delivered a Judgment in Civil Appeal No. 3819/1999 and a batch of similar Appeals wherein it has been held that the costs of wooden cases is includible in the value of glass sheets. For the reasons set out in that Judgment we answer the first question against the Appellants and hold that the costs of wooden packing is includible in the value of glass sheets. To this extent the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the buyer chooses to return it. 14.In the case of Gobind Glass Industries Ltd. v. Commissioner of Central Excise, Ahmedabad reported in 2002 (150) E.L.T. 293, CEGAT has also taken the same view. In this case CEGAT has held that the costs of wooden crates used for packing glass sheets would be excludible from the value of glass sheets if there was an arrangement under which the seller was obliged to take back the crates and pay the stipulated amount if the buyer chooses to return the crates. 15.In the impugned Judgment the Allahabad High Court has held that there was no evidence that, even in a single case any wooden crate had been returned to the Appellants. The High Court has held that term "durable" meant that the packing was of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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