IBP CO. LTD. Vs. CCE

JUDGEMENT

(1.) The issue involved in this appeal is the valuation of blended lubricating oil. The blended lubricating oils were manufactured in the appellant's factory at Budge Budge near Calcutta and removed in tankers to the packing station at Sakurbasti near Delhi. At the packing station, the goods were repacked into smaller containers and sold. The impugned order has held that valuation of bulk oils cleared at Budge Budge to excise duty should be done at the price of smaller packages from the repacking station and not at the bulk price at the factory of manufacture. The appellants have pointed out that the impugned order is contrary to the decisions of this Tribunal in identical cases of Castrol India Limited v. CCE, New Delhi and Savita Chemicals Limited v. CCE, Mumbai -VT . These orders were brought to the notice of the Commissioner also at the time of adjudication proceedings. He did not accept the appellant's contention observing that "the case law cited by the noticee are not squarely applicable in the instant case".

(2.) We have perused the records and have heard both sides. We find that the method of valuation confirmed in the impugned order is contrary to the orders of this Tribunal in the aforesaid cases. Those decisions of this Tribunal have also been confirmed by the Supreme Court.

(3.) The impugned order is clearly illegal in the facts stated above. Accordingly, it is set aside and the appeal is allowed.