Returnable packing cylinders: recovered container cost excluded from assessable value under excise valuation rules.

Durable, returnable cylinders used for packing liquid chlorine were treated as packing containers within Section 4(4)(d)(i) of the Central Excises & Salt Act, 1944, so the proportionate cost recovered in instalments on the basis of the cylinders' life was not part of the assessable value. The packing cost recovered per metric tonne was therefore excluded from valuation, and the appeal succeeded on that issue.

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Issues: Whether the proportionate cost recovered towards cylinders used for packing liquid chlorine was includible in the assessable value.

Analysis: The cylinders were of a durable nature and were returnable within the meaning of Section 4(4)(d)(i) of the Central Excises & Salt Act, 1944. The cost sought to be recovered in instalments on the basis of the cylinders' life could not, therefore, be treated as part of the assessable value.

Conclusion: The packing cost of Rs. 200 per metric tonne was not includible in the assessable value and the appeal succeeded.

Ratio Decidendi: Cost recovered towards durable, returnable packing containers is not includible in assessable value under Section 4(4)(d)(i) of the Central Excises & Salt Act, 1944.

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