2015 (9) TMI 1272

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....anufacturing and marketing of various ayurvedic medicaments and cosmetics which are classifiable under Chapter Heading Nos. 30 and 33 of the Schedule to the Central Excise Tariff Act, 1985. The dispute is about the valuation of two products which are as under: - "(a) Face Wash Gel 50 gm. free with Dandruff Shampoo 120 ml-bound together with a sticker label; (b) Face Wash Gel 100 gm. free with Dandruff Shampoo 200 ml - bound together with a sticker label." As can be seen from the aforesaid, the two items, viz., Face Wash Gel 50 gm. and Dandruff Shampoo 120 ml were bound together and sold as one product. Likewise, Face Wash Gel 100 gm. with Dandruff Shampoo 200 ml were bound together and sold. It is not in dispute that MRP of both the it....

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....llow by notification in the Official Gazette. (3) The Central Government may, for the purpose of allowing any abatement under sub-section (2), take into account the amount of duty of excise, sales tax and other taxes, if any, payable on such goods. (4) If any manufacturer removes from the place of manufacture any excisable goods specified under sub-section (1) without declaring the retail sale price of such goods on the packages, or declares a retail sale price which does not constitute the sole consideration for such sale, or tampers with, obliterates or alters any such declaration made on the packages after removal, such goods shall be liable to confiscation. Explanation 1. - For the purposes of this section, "retail sale price" mea....

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....and the shampoo in bulk and repack them in retail packages. Thereafter, the shampoo along with the free gel is bound together and the label is fixed on the product. We agree with the contention of the appellant that this process amounts to manufacture as per Chapter Note 5 to Chapter 33. Further, it is seen that both the products are covered under Section 4A and Standards of Weights and Measures Act. The ratio of Oswal Fats and Oils Limited (supra) is squarely applicable, in that case binds were packed along with soaps for free supply to buyers of soap. It was held that the additional package of bindis had no connection to the price of soap, the price of bindis is not includable in the assessable value of soap. In the Surya Foods Ltd. vs. C....