Assessable value excludes buyer-supplied packing cost and composite filling charges cannot be separately added.

Where packing material is supplied by the buyer, its cost is not added to assessable value, and the Tribunal applied that principle to exclude packing charges in favour of the assessee. A claimed additional amount per bottle for filling charges was also held not separately includible because the contract price was treated as a composite price covering the relevant cost elements and profit; the proposed breakdown of administrative or payroll expenses was found irrelevant. The disputed amounts were therefore excluded from assessable value, and the revenue challenge failed.

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Issues: (i) Whether the cost of packing was includible in the assessable value when the packing material was supplied by the buyer; (ii) Whether an additional amount of Rs. 1 per bottle towards filling charges was required to be included in the assessable value.

Issue (i): Whether the cost of packing was includible in the assessable value when the packing material was supplied by the buyer.

Analysis: The earlier principle applied was that where packing is actually supplied by the buyer, its cost is not to be added to the assessable value. That principle was held to apply directly to the facts before the Tribunal.

Conclusion: The packing charges were not includible in the assessable value and the finding was in favour of the assessee.

Issue (ii): Whether an additional amount of Rs. 1 per bottle towards filling charges was required to be included in the assessable value.

Analysis: The contract price was treated as a single composite price covering all elements of cost and profit. The suggested break-up of administrative or payroll expenses was held to be irrelevant, and no separate addition on this account was warranted.

Conclusion: The additional filling charges were not liable to be separately added to the assessable value and the finding was in favour of the assessee.

Final Conclusion: The order excluding the disputed amounts from assessable value was upheld and the revenue appeal failed.

Ratio Decidendi: Where packing is supplied by the buyer, its cost is not includible in assessable value, and a composite contract price cannot be artificially dissected to add separate charges not shown to be payable independently.

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