2007 (11) TMI 154

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....o July '96], they had cleared their products in this manner to different buyers, on payment of duty on the goods on an assessable value not including the cost of the packing material. In other words, they claimed abatement of the cost of packing material in terms of Section 4(4)(d)(i) of the Central Excise Act, from the invoiced price of the goods, while paying duty thereon. That was on the ground that the packing materials were durable and returnable by the buyer. The assessments were provisional. The original authority finalized the assessments by disallowing the above abatements and raised consequential demand of differential duty on the assessee. The assessèe, aggrieved by the decision of the said authority, preferred appeal to the Com....

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.... is shown that there was an arrangement between the seller and the buyer that the packing material would be returned by the latter, the material would be considered to be durable and returnable for purposes of above provision and, in that factual situation, the cost of the material would be liable to be deducted from the invoiced. It is submitted by ld. Counsel that, in the present case, there is no dispute regarding the durability of the paper tubes. It is also not in dispute that the relevant invoices expressly indicated that the paper tubes were returnable. It is contended that this declaration made by the assessee in the invoices reflected the arrangement between them and the buyer, which was that the packing material would be returned ....