Cleaning and maintenance charges for returnable packing material are excluded from assessable value when they are not part of manufacturing.

Cleaning and maintenance charges relating to durable and returnable packing material were held not includible in the assessable value of excisable goods because such services are connected with preparation of containers and not with the manufacturing process. The Tribunal relied on its earlier decisions and the Supreme Court's approval of the principle that unloading, sorting, cleaning and examination of bottles used for bottling do not form part of manufacturing and cannot be added to assessable value. The issue was answered in favour of the assessee, and the appeal was dismissed.

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Issues: Whether cleaning and maintenance charges relating to durable and returnable packing material are includible in the assessable value of excisable goods for the purpose of abatement from value.

Analysis: The Tribunal noted that the issue was covered by its earlier decisions and by the Supreme Court's approval of the view that services such as unloading, sorting, cleaning and examination of bottles used for bottling are not part of the manufacturing process and cannot be added to the assessable value. On that basis, the Tribunal held that cleaning and maintenance charges relating to the packing material are not includible in the assessable value.

Conclusion: The issue was answered in favour of the assessee, and the appeal was dismissed.

Ratio Decidendi: Charges for cleaning and maintenance of durable and returnable packing material, being connected with preparation of containers and not with the manufacturing process of the excisable goods, are not includible in assessable value.

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