Buyer-supplied packing material excluded from assessable value in central excise valuation dispute.

Buyer-supplied packing material is not includible in the assessable value of glass bottles for central excise valuation when the manufacturer's own packing was unsuitable. The Tribunal noted that the issue was already settled by the Supreme Court and applied that principle to exclude the cost of the packing materials supplied by the customer. The valuation demand was therefore rejected, the impugned order was set aside, and the appeal was allowed with consequential relief.

---

---

Issues: Whether the cost of packing materials supplied by the buyer/customer was includible in the assessable value of the glass bottles cleared by the appellant for central excise purposes.

Analysis: The dispute concerned valuation of finished goods manufactured and cleared by the appellant. The buyer had supplied packing materials because the packing undertaken by the appellant was unsuitable. The Tribunal noted that the point was no longer res integra and that the Supreme Court had already settled that the cost of packing materials supplied by the buyer is not includible in the assessable value.

Conclusion: The buyer-supplied packing material cost was not includible in the assessable value. The impugned order was set aside and the appeal was allowed with consequential relief.

---