KLJ PLASTICIZERS Vs. CCE

JUDGEMENT

(1.) When this application for stay came up for hearing, we find that the appeal itself can be disposed of as the issue raised is covered in favour of the appellant by the decision of the Hon'ble Supreme Court. The appellants are engaged in the manufacture of plasticizers of various types falling under chapter sub -heading 2917.90 of the schedule to the Central Excise Tariff Act.

(2.) The appellants clear the finished goods by packing them into tankers or drums, as the case may be, for the sake of convenience at the request of the customer. We are concerned in this appeal with the clearances in drums supplied free of cost by the customers.

(3.) It is contended that the appellants receive old and used drums from the buyers free of cost. The main products are cleared in these drums to the buyers. In arriving at the assessable value of such clearance the appellants do not add the cost of packing for the same. As the appellant have not included the cost of old and used drums, supplied free of cost by the buyers, proceedings were initiated in the show cause notice dated 9.5.2002 proposing to include the value of the packing material of the (drum) received free of cost from the buyers. The appellant contended that in the light of ratio of the decision of the Supreme Court in Hindustan Polymers v. CCE, 1989 (24) ECC 380 (SC) : 1989 (43) ELT 165 and Jauss Polymers Ltd., CCE Meerut, 2003 (157) ELT 626 the value of the packing material namely drum received free of cost from the buyer cannot be added to the assessable value of the goods cleared.