TMI Blog2002 (10) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... sizes 50ml, 100ml, 120ml, 200ml and 500ml which are then sent to the depots from where they are sold. There is no sale of paints in 200 litre container on the basis of the prices for paint of 20 ltrs container (i.e. 20 x 10) at any place. 3. These 200 litre bulk packs (unbranded) sent to the re-packers under stock transfer invoices and their eventual repacking into different sized packs were declared to the Department and this activity was considered to be not amounting to manufacture. For the ultimate pack sizes for the repacked goods, which were sold at the respective depots, sale value was declared. They were issued with Show Cause Notices on the ground that paint in 200 litre container was not sold at the factory gate, but was sold o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e depot, prior to the removal from the factory. 4. The lower authority confirmed the demands and found that the case law in Century Pulp Paper v. CCE, Meerut [2002 (150) E.L.T. 913 (T) = 2000 (36) RLT 246] and Savita Chemicals Ltd. v. CCE, Mumbai [2000 (119) E.L.T. 394] were not applicable in the facts of this case since the sale price of 200 litres container at the factory gate was not available and after that he came to the finding as follows : - "In the instant appeal the appellants arrived at the assessable value on the basis of the assessable value of 20 litre container which is being sold from the depot and multiplied it by 10 which does not have the sanction of Law. The question is why only the value of the 20 litre container i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 20 litres and then sold inter alia, giving a general impression that repacking from 200 litres to 20 litres alone is carried out by them in between removal of paints from the factory and sale of the same to the customers in the ordinary course of business. However, they had wilfully suppressed the fact that the 200 litres pack cleared from the factory are subsequently repacked to various sizes including but not exclusively 20 litres pack. The evidence on record clearly shows that the appellants are aware of the fact of repacking into the impugned size of containers before the paints reach the depots. It has been rightly observed by the Additional Commissioner that the plea of the appellants that they had kept the Department informed abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fected prior to 28-9-96 and under Rule 173Q read with Section 11AC for the clearances effected after 28-9-96. As regards the demand of interest under Section 11AB, the same is payable by the appellants in respect of the clearances effected on or after 28-9-96 and is not payable in respect of the clearances effected prior to 28-9-96 in view of the well settled legal position. " and disposed of the appeal. Hence, the present appeal. 5. We have heard both sides and considered the matter and find: - (a) It is well settled law that goods should be assessed in the form in which they are cleared from the factory and not the form or container, in which they are sold from the depot, after the repacking is done by the job workers when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 130) E.L.T. A262 (S.C.)] (ii) Castrol India Ltd. v. CCE, New Delhi 2000 (118) E.L.T. 35 [affirmed by Supreme Court as reported in 2000 (121) E.L.T. A224] (iii) This Bench in the case of Andhra Pradesh Paper Mills Ltd. by its Final Order No. F/1105/02 [2002 (149) E.L.T. 1000 (T)] had held similar view. We would follow these cases, as we find no contra decision cited before us. (d) The amendment to Section 4 w.e.f. 28-9-96 or even earlier will not cause an interpretation to be held that the 'repacking of the paints' and value addition thereby will be added to the exigible product, relying on the Supreme Court decision in Siddharth Tubes [2000 (115) E.L.T. 32] or C.B.E. C. F. No. 138/08/2000-CX 4, dtd. 3-1-2001 sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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