COLLECTOR OF CENTRAL EXCISE Vs. PONDS INDIA LIMITED

JUDGEMENT

(1.) This is an appeal under S. 351-(b) of the Central Excises and Salt Act, 1944 (hereinafter called 'the Act') from the judgment and order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi, (hereinafter called 'the Tribunal') dated 28th November 1988.

(2.) M/ s. Ponds India Ltd., (hereinafter referred to as 'the respondent') used to manufacture telcum powder and face powder falling under tariff item 14F.of the Central Excise Tariff, which. are now under sub-heading No. 3304.00 and were clearing the same on payment of duty. The assessee claimed deduction of cost of packing for transportation in respect of small packings of 15, 18,20,30,40 and 100 gms. powder ranging from 0.27 paise to 0.76 paise per dozen packings and the same was approved provisionally by the office of the Asstt. Collector of Central Excise, Pondicherry. The said approval was by an order dated 10th December,1985. It is alleged that it was later noticed that the small packs were first packed in dozen and then packed in secondary packings for easy transportation to the wholesale dealer, and it was found that the secondary packings were a must for delivery to the wholesale dealers (emphasis indicated). The Asstt. Collector came to the conclusion that the amount as claimed by the respondent was not deductible as per this Court's decisions in respect of post-manufacturing expenses. In the premises, a show cause notice was issued to the respondent on October 30, 1986 and a demand was made for the differential duty on the cost of secondary packings which was stated to be Rs. 3,46,15 1.92 for the period from December 2, 1985 to May 31, 1986. The Asstt. Collector by his order dated February 27, 1987 disallowed the respondent's claim for exclusion of the cost of packing for transportation and thus rejected its claim. He, inter alia, observed as follows :

(3.) There was an appeal to the Collector of Customs which was disposed of by an order dated 15th September, 1987. It is necessary to set out the said observations of the Collector., in view of the contentions sought to be raised in these matters. He, inter alia, observed as follows :