Supreme Court

Tata Chemicals Ltd. v. Collector of Central Excise, Ahmedabad

MANU/SC/0841/2015

06.08.2015

Excise

Excluding value of packing material illegal in conditional return

Not including the value of packing materials used to transport goods in the final sale price of goods is illegal, in the absence of an arrangement to return the same to the seller. The Court, upon perusing letters exchanged between the Assessee and the buyer, held that no arrangement existed between the two as the return of packing material by the buyer was conditional.

Relevant

Hindustan Polymers v. Collector of Central Excise MANU/SC/0298/1990
Mahalakshmi Glass Works (P) Ltd. v. Collector of Central Excise, Bombay MANU/SC/0265/1988
Commissioner of Central Excise v. Hindustan National Glass and Industries Ltd. MANU/SC/0199/2005
K. Radha Krishnaiah v. Inspector of Central Excise MANU/SC/0301/1986

Tags : excise value packing material

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