1997 (4) TMI 187 - AT - Central Excise

Tribunal allows appeal, directs refund calculation for specific expenses.

The Tribunal allowed the appeal, setting aside deductions for repair of trollies, uniform expenses, and commission to helpers from the assessable value. ... Assessable value - transport expenses - deduction for durable and returnable packing - refund of duty - time-barred claim - commission to salesmen and helpers - remand for quantificationDeduction for durable and returnable packing - transport expenses - Repair and maintenance of 'shells' and expenses for bottle breakage and repair and maintenance of coolers are deductible as transport expenses - HELD THAT: - The Court examined the appellant's claim that repair and maintenance of 'shells' (described as durable and returnable packing) and bottle breakage fall within the transport-related deductions remanded by the Tribunal. The remand direction to the Assistant Collector was confined to exclusion of transport expenses from the assessable value. If the expenditure pertains to durable or returnable packing it is not properly classifiable as transport expense for the purpose of that remand. The appellant could have pursued such a deduction earlier before the Tribunal; the present proceedings cannot be used to go behind the Tribunal's specific direction to deduct only transport expenses. [Paras 4, 5]Repair and maintenance of shells, bottle breakage and repairs and maintenance of coolers are not to be allowed as transport expenses; the earlier disallowance in that respect stands.Transport expenses - commission to salesmen and helpers - Whether expenses on repair of trollies, uniforms for drivers and helpers, and commission to helpers are deductible from the assessable value as transport expenses - HELD THAT: - The Court held that repair and maintenance of trollies, being used at the buyers' end for transport of goods to buyers' premises, constitute transport expenses and must be deducted from assessable value. Uniform expenses for drivers and helpers engaged in transport similarly qualify as transport expenses. Commission paid to salesmen does not qualify for deduction, but payments to helpers to the extent they are for work done in the course of transportation are deductible. The Court directed that these amounts be quantified and refunded in addition to the refund already granted, subject to the appellant providing necessary break-up figures to the adjudicating authority. [Paras 6, 7, 9]Expenses for repair of trollies, uniforms for drivers and helpers, and commission paid to helpers for transport work are deductible from assessable value; commission to salesmen is not deductible. Adjudicating authority to compute proportionate duty and pass appropriate order.Time-barred claim - Whether the refund claim is wholly within limitation - HELD THAT: - The Court noted the refund claim was filed on 31-3-1976 in respect of duty paid for the period 16-8-1974 to 16-8-1975 and observed that, on the face of the record, part of the claim is barred by time. The lower authorities were correct in holding that a portion of the claim was time-barred. [Paras 8]A part of the refund claim is time-barred.Remand for quantification - Scope of further proceedings required to give effect to the deductions allowed - HELD THAT: - The Court set aside the impugned orders insofar as they related to refund referable to repair of trollies, uniforms of drivers and helpers, and commission to helpers involved in transportation, and directed the adjudicating authority to work out the proportionate duty on these accounts and pass an appropriate order. The appellant must supply necessary break-up figures to enable computation. This is a remand for quantification and adjudication of the amounts already held deductible. [Paras 9]Matter remanded to adjudicating authority for computation of proportionate duty and grant of refund on the specified transport-related expenditures; appellant to furnish break-up figures.Final Conclusion: The appeal is allowed in part: deductions for repair of trollies, uniforms for drivers and helpers, and commission to helpers (to the extent attributable to transport) are to be excluded from assessable value and refunded after quantification; deductions claimed for durable/returnable packing, bottle breakage and coolers are not allowable as transport expenses; a portion of the claim is time-barred; the matter is remanded to the adjudicating authority for computation and grant of refund, subject to the appellant providing necessary details. Issues:1. Claim for refund of duty on assessable value.2. Inclusion of various expenses in the assessable value.3. Time limitation for filing refund claim.Analysis:The appellant, engaged in manufacturing aerated waters, included Rs. 2.85 per crate of 24 bottles in the declared price to be collected from buyers. The dispute pertains to the period from 16-8-1974 to 16-8-1975. The appellant sought a refund of duty amounting to Rs. 5,27,881.70, contending that the amount collected was as freight charges and should not be part of the assessable value. The Tribunal directed the Assistant Collector to allow the refund after excluding transport charges from the assessable value based on a Supreme Court decision. The Assistant Collector then allowed a refund of Rs. 85,922.45 based on various expenses incurred. The appellant sought additional refund for expenses like repair and maintenance of shells, trollies, commission to salesmen, etc., challenging the time limitation for the claim.The Tribunal found that expenses on repair and maintenance of shells, if related to durable packing, cannot be considered as transport expenses and hence cannot be deducted. However, expenses on repair of trollies, uniform expenses, and commission to helpers involved in transportation are admissible deductions from the assessable value. The Tribunal directed the adjudicating authority to calculate the proportionate duty on these expenses for a further refund. The Tribunal upheld the time limitation on part of the claim as held by the lower authorities.In conclusion, the Tribunal allowed the appeal, setting aside the orders in relation to the deductions for repair of trollies, uniform expenses, and commission to helpers. The adjudicating authority was instructed to calculate the proportionate duty on these expenses for a refund, provided the appellant furnishes the necessary breakdown figures. The Tribunal affirmed the time limitation on part of the claim, directing the appellant to comply with the adjudicating authority's requirements for a proper refund order.