Extended limitation and container hire charges in excise valuation were decided against the Revenue on disclosed facts and prior precedent.

Extended limitation under Section 11A of the Central Excise Act could not be invoked where the assessees had already disclosed collection of the disputed charges and the notice covered a time-barred period; the Revenue therefore failed on limitation. Container hire charges collected from marketing agents were also held not includible in the assessable value of aerated water, the valuation issue being covered by earlier decisions on similar facts; the Revenue therefore failed on valuation as well. The challenged orders were upheld in favour of the assessees.

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Issues: (i) whether the extended period under Section 11A of the Central Excise Act, 1944 was rightly invoked; (ii) whether container hire charges collected from marketing agents were includible in the assessable value of aerated water.

Issue (i): Whether the extended period under Section 11A of the Central Excise Act, 1944 was rightly invoked.

Analysis: The show cause notice covered a period which was held to be barred by limitation, and the assessees had already disclosed collection of the impugned charges in March 1994. On those facts, invocation of the extended period was found unwarranted.

Conclusion: The extended period under Section 11A was not rightly invoked.

Issue (ii): Whether container hire charges collected from marketing agents were includible in the assessable value of aerated water.

Analysis: The valuation question was treated as covered by earlier decisions holding that such charges were not liable to be included in the assessable value on the facts considered.

Conclusion: Container hire charges were not includible in the assessable value.

Final Conclusion: The Revenue's appeals failed on both issues, and the orders under challenge were upheld in favour of the assessees.

Ratio Decidendi: Extended limitation cannot be invoked where the relevant facts were disclosed, and container hire charges are not includible in assessable value unless legally shown to form part of the price of the goods.

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