Inclusion of Packing Cost in Cement's Assessable Value Confirmed by Tribunal

The Tribunal upheld the lower authorities' decision, confirming the inclusion of packing cost in the assessable value of cement. The appeal was dismissed due to the lack of returnability of the gunny bags and the legal obligations regarding assessable value calculation. Previous judgments, including one by the Supreme Court, were considered, rejecting the appellant's defense of ignorance of the law.

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Issues:
1. Inclusion of the cost of packing in the assessable value of cement.
2. Determination of whether the gunny bags used for packing cement are durable and returnable.
3. Applicability of Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944.
4. Interpretation of the term "returnable by the buyer to the assessee."
5. Legal implications of using new and old gunny bags for packing cement.
6. Consideration of previous judgments regarding the inclusion of packing cost in assessable value.

Analysis:

Issue 1: Inclusion of the cost of packing in the assessable value of cement
The appellant submitted a revised price list excluding the cost of packing, which was later revised by the Superintendent of Central Excise to include the packing cost. The Asstt. Collector confirmed the demand for differential duty based on the assessable value that included the packing cost.

Issue 2: Durability and returnability of gunny bags
The Appellate Collector rejected the appellant's claim that the bags were durable and returnable, stating that there was no legal obligation for buyers to return the bags. The appellant argued that the bags were durable and returnable, citing Ministry instructions on using new and old bags in a specific ratio.

Issue 3: Applicability of Section 4(4)(d)(i)
The Asstt. Collector and the Appellate Collector relied on Section 4(4)(d)(i) to determine the assessable value, emphasizing that only durable packing could be excluded. The appellant's argument that the bags were returnable was dismissed.

Issue 4: Interpretation of "returnable by the buyer to the assessee"
The respondent argued that the bags were not returnable as per the legal definition, citing previous judgments. The Tribunal referred to judgments emphasizing the need for a contractual obligation for returnability.

Issue 5: Use of new and old gunny bags
The appellant's use of new and old bags as per Ministry instructions did not establish returnability. The absence of a specific agreement for returnability was highlighted.

Issue 6: Previous judgments and legal implications
The Tribunal considered previous judgments, including one by the Supreme Court, which clarified the inclusion of packing cost in the assessable value. The Tribunal rejected the appellant's argument of ignorance of the law as a defense.

In conclusion, the Tribunal upheld the orders of the lower authorities, confirming the inclusion of packing cost in the assessable value of cement and dismissing the appeal based on the lack of returnability of the gunny bags and the legal obligations regarding assessable value calculation.

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