TaxTMI 
TaxTMI 
1992 (2) TMI 94
X X X X Extracts X X X X
X X X X Extracts X X X X
....cise, Dum Dum Division Range VI (Respondent No. 3) under Memo No. C. No. CE (13)/9/NIC/R-Y/DD/89/415 dated 26th June 1989 upon the writ petitioner. By the said show-cause/demand notices the respondent No. 3 directed the writ petitioner to deposit Central Excise Duty on account of credit charges in respect of the credit sales of the petitioner company for the periods as shown in the aforementioned notices. 2. It has been alleged in the show-cause notices that the petitioner company, holder of Central Excise Licence in Form L-4 No. 8/Glass/61(l) engaged in manufacturer of excisable goods, glass bottles, phials falling under chapter heading sub-heading No. 7007.90 of the Schedule to the Central Excise Tariff Act, 1985 had been availing of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rability and returnability of their packings could be produced by the petitioner company for the material period. Moreover it was observed from the records that in almost all cases goods had been cleared in packed condition which was their normal trade practice. Hence the packings in their case are nothing but essential packings and no secondary packings as claimed by the petitioner company for safe delivery of their goods which are fragile in nature. Hence the charges realised in respect of such packings should form part of the assessable value of the goods. 5. Thus it has been charged in the show-cause notices that the petitioner company was found to have collected additional amounts in the forms of credit charges, transportation charg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....regards packing charges the company denied and disputed each and every allegation made in the show-cause notice with respect to packing charges but refrained from making any submission on this issue in view of injunction issued by this Court. 9. The learned Assistant Collector of Central Excise (respondent No. 2) by his order (Original) No. 60/(70)(30) 83 DDD/88 dated 11-6-1989 adjudicated upon 2 points namely credit charges and transportation charges. He left the point of packing charges out of consideration in view of injunction issued from this Court. He ordered that the demands sustained in so far as it relates to the credit charges projected in the subject show-cause-cum-demand notice and ordered that transportation charges are admi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f it is really an interest then it will not enrich the value and marketability of the goods sold on credit at the factory gate and in that view of the matter it may not be assessed to excise duty. It has been urged by the learned counsel for the petitioner that the credit charges for the period under reference came to about 1.85% per month which in no way is in excess to the prevailing trade practices. But on this point, the respondent No. 2 has observed in the impugned order that "it is very much evident from the bills and the quotations submitted by the said company at the time of personal hearing that the normal price has been arbitrarily reduced by showing imaginative credit charges. Hence such cost is rightly to be included in the asse....