CAPRIHANS INDIA LIMITED Vs. CCE

JUDGEMENT

(1.) IN this appeal filed by M/s. Caprihans India Limited, the matter relates to the inclusion of additional packing charges in the assessable value of laminated sheets. The appellants were transferring their goods to their branches where they were packed to make them suitable for sale and delivery to the independent wholesale buyers. The Collector of Central Excise (Appeals) observed that as further packing done at the branches was essential to market the goods, the argument that ex -factory price in respect of the said goods is available at the factory gate, was of no consequence. He held that the price recovered at the branches becomes relevant.

(2.) WE have heard Shri Vinay Thakur, Sr. Manager (Excise) for the appellants. He submitted that the appellants had a factory gate price and when there was a factory gate price, the sales from the depots should also be covered by such ex -factory price. At the factory gate, no extra packing was involved and that the packing done at the depot was for subsequent despatch to outstation customers. He pleaded that as the appellants could not produce evidence about factory gate sale before the adjudicating authority and the appellate authority, the matter be remanded. In reply, Shri K. Shiv Kumar, JDR submitted that the appellate authority had discussed the matter in detail and that as in all cases the goods were delivered in packed condition, the packing charges were required to be included in the assessable value.

(3.) WE have carefully considered the matter. We find that the Collector of Central Excise (Appeals) had observed that the appellants had not stated categorically before him that the goods in question were delivered to the independent wholesale buyers at the factory gate and they had not cited a single instance wherein the goods in question were sold and delivered to the independent wholesale buyers at the factory gate. Their submission was that they had branches all over the country and that they were required to sell the goods through branches and that the removal of the goods from the appellants' factory to their own branches will not constitute normal sale in wholesale. Paras 4, 5 and 6 from the Order -in -Appeal are extracted below as under: