Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excise Act valuation of excisable goods |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excise Act, 1944-Section 4 and 4(4)(d)(i)-Valuation of excisable goods for purposes of levy of excise duty-Glass sheets packed in wooden crates/boxes for marketing purposes by manufacturer-No agreement or arrangement for returning packing material to manufacturer-Costs of packing, if inclusive in assessable value of glass sheets-Held: For the purpose of making glass sheets marketable, it cannot be moved without the special arrangements of packing it in wooden crates-Hence, cost of wooden crates/ boxes is includible in the assessable value of glass sheets-Furthermore, costs of wooden crates cannot be excluded by averring that it is for the purposes of protecting the glass but it is only when the goods are capable of being marketed without special packing. Section 4(4)(d)(i) and Explanation to the section-Scope and ambit of Discussed Respondent - assessees are manufacturers of glass sheets. They packed their product- glass sheets in wooden crates/boxes. In Civil Appeal No. 3819 of 1999, Assistant Collector found that the respondents sent glass sheets to their own godown in wooden cases, stored and packed them in wooden cases for delivery in the wholesale trade and also cleared it from their factory gate and through the depots, packed in wooden cases; and as such the cost of wooden crates is includible in the assessable value of glass sheets. Respondents filed appeal. Tribunal relied on its previous order based on finding of fact that barring stray instances glass was delivered to local customers with just a paper packing interleaved with straws, and as such the cost of the wooden cases was not includible in the value of the glass sheets and held in favour of the respondents. Hence the present appeals. Appellant - department contended that the glass sheets being fragile in nature cannot be marketed without special packing or arrangement; and that the respondent - assessee had led no evidence to show that the glass sheets were marketable without special packing. Respondent - assessee contended that as the previous order passed by the Tribunal clearly established that the glass sheets were marketable without wooden packing, there was no need to lead proof for the same; and that the packing in the nature of wooden crates is not covered in the Explanation to Section 4(4)(d)(i) and, as such its cost would not be includible. |
Judge | Hon'ble Mr. Justice S.N. Variava |
Neutral Citation | 2005 INSC 90 |
Petitioner | Commissioner Of Central Excise, Allahabad |
Respondent | M/s. Hindustan Safety Glass Works Ltd . |
SCR | [2005] 2 S.C.R. 229 |
Judgement Date | 2005-02-22 |
Case Number | 3819 |
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