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of <h1>Tribunal rules packing costs not part of assessable value, emphasizing strict interpretation of Section 4.</h1> <h3>Commissioner of C. Ex., Delhi-III Versus Innovative Tech Pack Ltd.</h3> Commissioner of C. Ex., Delhi-III Versus Innovative Tech Pack Ltd. - 2017 (358) E.L.T. 409 (Tri. - Chan.) Issues:- Inclusion of cost of packing material in transaction value for excisable goods.- Applicability of penalty waiver based on case laws and period of demand.- Interpretation of Section 4 for determining assessable value of goods.Analysis:Issue 1: Inclusion of cost of packing materialThe case involved a dispute regarding the inclusion of the cost of packing material in the transaction value of excisable goods. The appellant argued that the packing material received free of cost from the buyer should not be considered in the value of goods as it was solely meant for transportation and did not render the goods marketable. The Tribunal referred to previous judgments and held that the cost of packing material should only be included if it contributes to the value of the goods or is necessary to make the goods marketable. Since the PET containers were marketable without being packed in corrugated cartons, the Tribunal ruled in favor of the respondent, stating that the cost of cartons should not be included in the assessable value of goods.Issue 2: Penalty waiver and case lawsThe Revenue argued for the imposition of a penalty based on the extended period of demand and cited case laws to support their stance. They contended that the penalty should not have been dropped by the Commissioner (Appeals) as the period in question was after a specific date. However, the Tribunal disagreed with the Revenue's argument and upheld the dropping of the penalty, citing the applicability of previous judgments and the nature of the levy of Central Excise duty. The Tribunal found that the penalty waiver was justified in this case.Issue 3: Interpretation of Section 4 for assessable valueThe Tribunal analyzed the provisions of Section 4 for determining the assessable value of goods. By referring to relevant case laws and legal principles, the Tribunal concluded that the cost of packing material should only be included in the assessable value if it is necessary to make the goods marketable. The Tribunal's interpretation of Section 4 emphasized the importance of strict construction when extending the levy of Central Excise duty beyond the manufactured article itself. Based on this interpretation, the Tribunal ruled in favor of the respondent and allowed the cross-objections with consequential relief.In conclusion, the Tribunal dismissed the appeal filed by the Revenue and upheld the decision to exclude the cost of packing material from the assessable value of goods, citing relevant case laws and legal principles to support their judgment.
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