TaxTMI 
TaxTMI 
2017 (5) TMI 132
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....se are that the respondents were receiving packing material viz. corrugated cartons from their buyer M/s Dabur India Ltd on free of cost basis for use in packing of PET bottles/jars manufactured by them. While selling their goods viz. PET bottles/jars to M/s Dabur India Ltd, the assessee had not included the cost of such packing material received free of cost in the transaction value. Revenue issued a show cause in terms of Rule 6 of Central Excise Valuation Rules, 2000, alleging that the cost of such packing material supplied free of cost is to be treated as additional consideration flowing from the buyer to the assessee in relation to sale of the goods. The matter was adjudicated and the demand was confirmed along with interest and penalt....
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.... and hence their value cannot be included in the value of excisable goods since the cartons do not render their manufactured goods as marketable. Relying upon the judgment of Bombay High Court in the case of Tata Motors Ltd. Vs. UOI - 2012 (286) ELT 161 (Bom.), she argued that the amended provisions of Section 4 are not materially different from the provisions of this Section prior to 1 July 2000. She relied upon the following case laws: (i) CCE, Indore Vs. Grasim Industries Ltd, - 2014 (304) ELT 310 (Tri. Del.) (ii) Shakti Organic Chemical Industries Pvt. Ltd. Vs. CCE- Final Order No.51850/2016 dtd. 18.05.2016. (iii) CCE Vs. Gujarat Alkalies & Chemicals Ltd Final Order No.11246-11248/2015 dtd. 18.08.2015. 5. Heard both the side....
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....ng, servicing, warranty, commission or other matters, but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid. 5.1 In our view, the words "any amount that the buyer is liable to pay to or on behalf of assessee for the reason of or in connection with sale", would cover the amount paid or payable by the buyer for the goods, only for the expenses which contributed to the value of the goods or are necessary to make the goods marketable and this expression would not include the amounts paid by the buyers for something which has no nexus with the emergence of marketable goods or does not contribute to the value of the goods up to the point of sale from the place of removal. Thus if some goods become ....
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....respect of the provisions of Section 4 of Central Excise Act, 1944, as it stood during the period prior to 1-7-2000 and in which clause d(ii) of Section 4(4) was about packing charges, while Section 4 w.e.f. 1-7-2000 and the definition of "Transaction Value" in it, is totally silent about the packing charges, in our view the principle laid down by the Apex Court in cases of Hindustan Polymers (supra), Jauss Polymers Ltd. (supra) and CCE v. Superior Products (supra) is also applicable to Section 4, as it stands w.e.f. 1-4-2000, as the Apex Court in para 51 of its judgment in case of Bombay Tyre International (supra) has held that the statutory provision regarding inclusion of packing charges calls for strict construction, as levy is sought t....