TaxTMI 
TaxTMI 
2006 (2) TMI 309
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.... depot is in the said packsize. However, in case of balance 5% as per the requirement of the customer, these goods are packed in the packsize of 10 kgs and 5 kgs before sale. The appellants recover packing surcharge in such cases to meet the expenses for repacking of goods. (ii) The department had issued Show Cause Notices demanding duty on such packing surcharge recovered from the customer and to levy penalty under Rule 173Q of the Central Excise Rules, 1944. (iii) The appellants replied to the Show Cause Notice replying that the goods are sold from the depot and as per Rule 7 read with Rule 4 of the Central Excise Valuation Rules, 2000, the assessable value of the goods sold from such depot will be the normal transaction value at whic....
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....sold and the price charged at which goods are removed after repacking from depot would be correct transaction value, and that reliance on the judgment of Savita Chemicals was misplaced as the facts of the case were entirely different. (vi) The Commissioner of Central Excise (A) after hearing has set aside the order of the Assistant Commissioner and remanded back the case for de novo consideration inter alia on the grounds that department has not enclosed the copy of SCN so the proceedings are required to be sent back for fresh consideration. 2. The learned advocate for the appellants relies on the decision of Savita Chemicals (cited supra) to contend that the expression 'such goods' in Rule 7 of the Central Excise Valuation Rules, 2000 o....
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....ansaction value for valuation and assessment purposes. Thus if assessee splits up his pricing system and charges a price for the goods and separately charges for packaging, the packaging charges will also form part of assessable value as it is a charge in connection with production and sale of the goods recovered from the buyer." 4. After hearing both sides, we find that the valuation law has undergone a change with effect from 1-7-2000 requiring excise valuation to be done according to transaction value of the goods under assessment. Section 4(1) of the Central Excise Act, 1944 (CEA) stipulates transaction value to be adopted in a case where goods are sold for delivery at the time and place of removal. In this case, the goods are not sold....