COMMISSIONER OF C. EX. Vs. COOLADE BEVERAGES LTD.

JUDGEMENT

(1.) THESE appeals involve common issues. Therefore, it is expedient to consider them and dispose them of together.

(2.) APPEAL No. 2438/98 -A is by the Revenue. The issues as presented in it may be taken as representative for the purpose of decision of all the appeals. The respondent in that appeal, namely, M/s. Coolade Beverages Ltd. are manufacturers of aerated waters/beverages duly liable to Central Excise duty. The manufacturing activity basically consists of bottling. They obtained the concentrate for aerated water from M/s. Britco Food Company Ltd. which is a wholly owned subsidiary for Coca Cola Corporation. The bottled drink is Coke. They sell the bottled beverage to wholesale dealers. Central Excise duty was paid based on the wholesale price of the beverage to dealers. The Central Excise authorities observed that the respondents were collecting from some wholesale dealers rent on containers (ROC) @ Rs. 7.50 per crate. Similarly, they received over Rs. 26 Lakhs from Britco under credit note as price support incentive. Credit Note No. 240, dated 18 -12 -1995 of Britcoto Coolade Beverage Ltd. states as under : -

(3.) THE Central Excise authorities issued Show Cause Notice alleging that the cost of ROC and the amount received from M/s. Britco are liable to be treated as part of the price of the aerated water, and the value obtained by addition of these to the wholesale dealer price should be taken as the assessable value of the aerated water. It was contended that in terms of Rule 5 of Central Excise (Valuation) Rules, any additional consideration has to be treated as includible in the assessable value.