2003 (1) TMI 736

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....issioner of Central Excise, Mumbai-III against the appellants confirming a duty demand of Rs. 54,30,713/- and imposing a penalty of Rs. 41 Lakhs under Rule 173Q of the Central Excise Rules and also directing the appellants to pay interest at the rate of 20% under Section 11AB of Central Excise Act, 1944. The main issue involved is whether the value of Plastic Caps is includible in the assessable v....

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....the period prior to September, 1996 in view of the Board's Circular No. 655/46/2002-CX dt. 26.8.2002. The following case laws have been relied upon by the appellants in support of their submissions: - 1) Metal Box of India Ltd. v. Collector MANU/CE/0073/1983 Apex Court in 1990 (45) ELT (956). 2) Col-Tubes (P) Ltd. v. Collector 194 (72) ELT (342) (T) affirmed by Apex court in ....

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....he appellants. 3. Shri M.K. Gupta, learned Jt. C.D.R. appearing for Revenue alongwith Shri Ishar Singh, learned JDR argues that the cap is only a component of the Tube and therefore, its value has to be included in the value of the tube. He relies on the ratio of the Apex Court judgement in the case of UOI v. J.G. Glass Industries Ltd.. He further states that valuation and classification are en....

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....rinting thereon are carried out within the same factory because in this case the ultimate product which happens to be excisable item at the factory gate is the printed bottle. As such, we are of the view that this decision of the Apex Court provides a direct answer to the issue involved in the impugned case. Accordingly where the plastic caps are fitted to the tubes before removal from the appella....