HAWKINS COOKERS LTD. Vs. CCE

JUDGEMENT

(1.) The appellants manufactured pressure cookers in several central excise jurisdictions. these pressure cookers are not sold ex -factory. They are first removed to the appellant's depots and from there they are sold to wholesale dealers. The pressure cookers are individually packed in cartons and they are transported in that packing to the depots. Sales to local wholesale dealers are also in that packing. However, when the sales are to upcountry wholesale dealers the pressure cookers are additionally packed in master cartons. Each such master carton takes in six pressure cookers. In the impugned order, Commissioner, Central Excise (Appeals), Allahabad, while deciding Revenue's appeal, has held that the cost of master cartons is required to be included in the assessable value of the pressure cookers so packed and sold. The appellant contests this finding.

(2.) We have perused the records and have heard both side. The submission on behalf of the appellants is that it well settled that only the cost of the packing in which an article is generally sold in the wholesale market at the factory gate is required to be included in the assessable value. Learned Counsel for the appellants relied on the decision of the Hon'ble Supreme Court in the case of Govt. of India v. Madras Rubber Factory Ltd. 2003 -TaxindiaOnline - -SC and other decisions in support of this contention. The learned Counsel has also brought to our notice order in Appeal dated 23.7.2003 passed by the Commissioner of Central Excise, Jalandhar on the same issued in the appellants own case wherein the Commissioner has decided in favour of the appellants, relying the decision of the Apex Court in the MRF case.

(3.) It is clear in the facts of the present case that master carton is not a packing used for disposal of the goods at the factory gate or generally in wholesale trade from the appellant's depots. Therefore in the light of the Apex Court decision in Madras Rubber factory case, there is no legal requirement to include the cost of the master cartons in the assessable value, while subjecting pressure cookers to duty. The impugned order, which has held to the contrary, is clearly erroneous. The appeals are allowed and impugned orders are set. aside.