Integral closure part of packing container qualifies for exclusion from assessable value under the exemption notification.

Notification No. 34/82 was applied to exclude from assessable value the cost attributable to metal containers used for packing excisable goods. The Tribunal held that a capsule used to close the biscuit container formed an integral part of the metal container, not a separate accessory, and the expression "metal container" was wide enough to include it. On that basis, the capsule cost was treated as part of the container cost eligible for exclusion, and the valuation adopted by the lower authority was upheld.

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Issues: Whether the cost of the capsule used to close the metal container in which biscuits were packed was excludible from the assessable value under Notification No. 34/82.

Analysis: Notification No. 34/82 exempted the part of value representing metal containers used for packing excisable goods. The capsule formed an integral part of the metal container used for packing biscuits and was not merely an accessory. The Tribunal followed its earlier view that the expression "metal container" was wide enough to include the capsule and that its cost formed part of the container cost eligible for exclusion from the value of the biscuits.

Conclusion: The cost of the capsule was rightly excluded along with the metal container, and the appeal failed.

Final Conclusion: The impugned valuation was upheld and no interference was called for with the order of the lower authority.

Ratio Decidendi: Where a closure item forms an integral part of the metal container used for packing excisable goods, its cost is included in the container cost and is eligible for exclusion from assessable value under the exemption notification.

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