TaxTMI 
TaxTMI 
1992 (9) TMI 199
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....dustan Lever Ltd. who supply the raw materials. In the case of goods manufactured on job work basis i.e. detergent cake is initially wrapped in manufacturer's label/wrapper and further a number of cakes (e.g. 144 nos.) are kept in corrugated boxes and the goods are despatched direct to the depots/nominees of M/s. Hindustan Lever Ltd., according to the direction of the latter company. From there the goods are sold to wholesale buyers. 1.2 The respondents were filing price lists in Part I as per the direction of M/s. Hindustan Lever Ltd. in respect of detergent cakes manufactured on job work basis. In the relevant price lists the respondents claimed the following deductions, amongst others, which are now in dispute before us :- (i) Cost....
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....lector that the corrugated boxes in which a number of primary packed detergent cakes are kept would be a normally wholesale packing and therefore, its cost cannot be excluded from the value of the goods under Section 4 of the Central Excises & Salt Act, 1944. 2.2 The lower appellate authority, on the other hand, relying on Bombay High Court's decision in the case of Godrej Soaps v. UOI [1986 (25) E.L.T. 482] has held that cost of packing in corrugated boxes was not to be included in the assessable value. 2.3 At the time of hearing, the learned JDR for the Revenue has relied upon Tribunal's judgment in the case of Kusum Products Ltd. [1988 (38) E.L.T. 513 (Tribunal)] which, according to him, is directly applicable to the facts and circ....
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....milar circumstances of another job worker of a subsidiary of Hindustan Lever Ltd., namely in the case of Tungbhadra Industries Ltd. v. CCE, Hyderabad (Order No. 95 & 96/92-A, dated 27-3-1992) reported in 1992 (6L/ E.L.T. 512 (Tri.), the matter has been remanded to the adjudicating authority to determine afresh the question of inclusion of the cost of corrugated boxes in the instant case. 2.5 We have carefully considered the pleas advanced on both sides. We are in agreement with the learned Advocate for the respondents. We reproduce below para 16 of the Tribunal's judgment in the case of Tungbhadra Industries, supra :- "It is true that if the corrugated boxes are only meant for safe transportation, then in view of the judgment of the S....
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.... and the Assistant Collector shall decide the question in accordance with the principles of natural justice. (ii) Handling expenses incurred in movement of finished goods to wholesale dealers & (iii) Remuneration to clearing and forwarding agents for handling of goods in transit and other incidential services. 2.6 The original authority has simply held that these are in the nature of post- manufacturing expenses (PME) and in the light of Supreme Court's judgment in the case of Bombay Tyres International Ltd. [1983 (14) E.L.T. 1896], these would form part of the value of the goods. 2.7 Lower appellate authority holding in favour of the respondents has, however, held that these are admissible deductions and these would be allowed ....
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....: 'Such handling expenses are basically in the nature of loading/unloading charges incurred in the course of transportation of the goods to the depot and from the depot to the wholesale dealers as the goods have to be transhipped from one truck to another or from wagon to a truck etc.' 11. The Supreme Court in Indian Oxygen v. CCE [1988 (36) E.L.T. 723 (S.C.)] held that loading expenses incurred outside the factory gate are excludible from the assessable value. Admittedly, the handling expenses are incurred outside the factory gate and therefore, the Collector is Justified in excluding the handling expenses from the assessable value. 12. The next item is the remuneration paid to the clearing agents, forwarding agents. The reply to ....
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.... proceeds. 2.11 Original authority has treated them as PME and therefore, are liable to be included, according to it, in view of the Supreme Court's judgment in the case of Bombay Tyres International Ltd. 2.12 Lower appellate authority, on the other hand, has held to the contrary if they are identifiable. 2.13 Learned JDR for the Revenue urges that Bank charges are collected from the customers in respect of the sale proceeds of the excisable goods. Therefore, these are directly related to the sale of goods and hence would form part of the assessable value of the goods. 2.14 Learned Advocate, submits that bank charges for collection of sale proceeds are analogous to "interest on receivables" which have been held by the Tribunal i....