TaxTMI 
TaxTMI 
1997 (9) TMI 102
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....pect of the said product wherein the price was shown as Rs. 32/- per crate of 24 bottles. In the said price list there was a note to the effect that the appellant was realising Rs. 2.50 per crate towards rental and Rs. 3.00 per crate towards service charges and the said amounts were not included in the price. The Assistant Collector of Central Excise, Vijayawada, issued notice dated August 17, 1984 requiring the appellant to show cause why the said amount of rental and service charges should not be included in the price. The appellant submitted a reply to the said show cause notice. By order dated November 30, 1984, the Assistant Collector of Central Excise while according approval to the assessable value as shown in the price list included....
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.... include these miscellaneous service charges. The Technical Member [Shri V.P. Gulati] was, however, of the view that service charges have to be included in the price for the purpose of arriving at the assessable value. He held that the preparatory operations to ensure that the bottles are fit for bottling have to be considered a part of manufacturing process and the cost of the same has to be reckoned towards the manufacture of the appellant's product. In view of the difference of opinion among the two learned Members, the matter was referred to the third Member of the Tribunal on the following point of difference : "Whether in the facts and circumstances of the case, the service charges do not relate to the manufacture of aerated water,....
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....der the Act duty of excise is chargeable on any excisable goods with reference to value. For the purpose of Section 4, the expression "value" is defined in clause (d) of Section 4(4). The relevant part of the said definition is produced as under : "4(d) "Value" in relation to any excisable goods, - where the goods are delivered at the time of removal in a[i] packed condition, includes the cost of such packing except the cost of the packing which is of a durable nature and is returnable by the buyer to the assessee. Explanation. - In this sub-clause "packing" means the wrapper, container, bobbin, pirn, spool, reel or warp beam or any other thing in which or on which the excisable goods are wrapped, contained or wound." 4.In the c....
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....andwise, (sometimes the bottles get mixed with bottles of other manufacturers which are to be separated). Thereafter, the bottles are examined for any defects which are also separated. Cleaning of the bottles is done chemically. These are then loaded in the trolleys, brought to the factory and placed in conveyors to automatic bottle washing plant from where they come out after washing. Bottles are examined again in strong light to avoid contamination". 6.The process referred to above relates to preparing the bottles that were used earlier to be reused for the purpose of bottling of the aerated water produced by the appellant. Since the aerated water has to be supplied in packed bottles only, the activities for which the appellant was cla....