VIKRAM DETERGENTS LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE reference required to be considered by this Bench in these appeals.

(2.) THE brief facts of the case are that the appellants are engaged in the manufacture of detergent powder and they have an arrangement with M/s Hindustan Lever Ltd. for repacking of bulk detergent powder received by them into small consumer packs which are thereafter delivered "in HDPE bags" on payment of duty on the basis of assessable value derived from Hindustan Lever's (hereinafter referred to as trader) sale price. Admitted position is that there is no buyer at the time when goods are removed from the assessee (appellant) factory. The issue involved is the claim of deduction of the cost of HDPE bags under Section 4(4)(d)(i). The invoices issued by the traders from their depot to their customers bear following remarks : - "Deliveries of Detergent Powder, and scourer powder will be made in High Density Polythelene HDPE bags. The HDPE bags being durable in nature are capable of being reused by us. On return of these bags to us in old but reusable condition the cost thereof recovered as part of the price of the goods sold to you will be reimbursed by us to you".

(3.) WE have heard both the sides. The ld. Advocate for the Appellants submitted : -