JAUSS POLYMERS LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The question raised for consideration in this appeal is whether the cost of cartons and labels supplied by customers is to be included in the assessable value of the plastic pet jars manufactured by the appellant.

(2.) The matter was carried in appeal to the Tribunal by the appellant after having suffered various orders at the hands of the Department and the Tribunal after adverting to the decision of this Court in Govt. of India V/s. Madras Rubber Factory Ltd. took the view that the necessary test for including the packing charges in the assessable value is whether packing, the cost whereof is sought to be included in the packing in which it is ordinarily sold in the course of a wholesale trade to the wholesale buyer or to put it another way, whether such packing is necessary for putting the excisable article in the condition in which it is generally sold in the wholesale market at the factory gate. If it is, then its cost is liable to be included in the value of the goods otherwise not and on that basis dismissed the appeal filed by the appellant. Hence this appeal.

(3.) Learned counsel for the appellant after adverting to the various orders passed by the Tribunal and this Court submitted that in Hindustan Polymers V/s. CCE this Court has clearly held that if the manufacturer asks the customer to bring his own container and does not charge anything therefor for packing, then the cost of packing cannot be added to or subtracted from the price at which the goods have been sold by the manufacturer.