Valuation of reusable bottles and crates raised a referable question of law on apportionment and depreciation treatment.

Apportionment of the value of glass bottles and plastic crates for inclusion in aerated water valuation under Rule 57A was treated as a point of law requiring reference because the containers were repeatedly used, not sold with the goods, and their average life and depreciation method were in dispute. The matter was regarded as not free from doubt, so the original reference question was reformulated to state the issue more precisely. The reference application was allowed and the reformulated question was directed to be referred.

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Issues: Whether a question of law arose for reference and whether the reference application should be allowed on the reformulated question concerning apportionment of the value of glass bottles and plastic crates for inclusion in the value of aerated water under Rule 57A of the Central Excise Rules, 1944.

Analysis: The items in question were repeatedly used and were not sold along with the aerated water. The Tribunal noted the industry practice regarding their average life span and the manner in which depreciation was being worked out, and found that the matter was not free from doubt. In these circumstances, the Tribunal held that the controversy gave rise to a point of law requiring reference, and the original question was reformulated to bring out the issue more precisely.

Conclusion: The reference application was allowed and the question was directed to be referred in the reformulated terms.

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