Customer-supplied packing excluded from excise assessable value, with relief granted to the assessee.

Customer-supplied cartons free of cost were held not includible in the assessable value of tin containers for central excise duty under Section 4. The Tribunal followed its earlier view and the Gujarat and Karnataka High Courts' approach that packing provided without charge by the buyer does not form part of assessable value, noting that Bombay Tyres International had already been considered and that no contrary binding authority existed. It also relied on the need for uniform assessment practice and avoidance of discrimination between manufacturers. The appeal was allowed with consequential relief to the assessee.

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Issues: Whether the cost of cartons supplied by the customer free of charge was includible in the assessable value of tin containers for levy of central excise duty under Section 4 of the Central Excises and Salt Act, 1944.

Analysis: The Tribunal followed its earlier decision, which in turn relied on the Gujarat and Karnataka High Courts' view that packing supplied by the customer without cost to the manufacturer could not be included in the assessable value. It noted that the Supreme Court decision in Bombay Tyres International had been considered by the High Court and that no contrary binding authority existed. The Tribunal also adopted the settled practice of maintaining uniformity of assessment and avoiding discrimination between manufacturers.

Conclusion: The cost of customer-supplied cartons was not includible in the assessable value. The appeal was allowed with consequential relief to the assessee.

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