SIGN IN SUBSCRIBE

News Update

India-Ghana Joint Trade Committee meeting held in AccraGhana agrees to activate UPI links in 6 monthsGST - Record does not reflect that any opportunity was given to petitioner to clarify its reply or furnish further documents/details - In such scenario, proper officer could not have formed an opinion - Matter remitted: HCED seizes about 20 kg gold from locker of a cyber scammer in HaryanaGST - Mapping of PAN number with GST number - No fault of petitioner - Respondent authorities directed to activate GST number within two weeks: HCGST - Circular 183/2022 - Petitioner to prove his case that he had received the supply and paid the tax to the supplier/dealer - Matter remitted: HCGST -Petitioner to produce all documents as required under summons -Petitioner to be heard by respondent and a decision to be taken, first on the preliminary issue raised with regard to applicability of CGST/SGST: HCGST - s.73 - Extension of time limit for issuance of order - Notifications 13/2022-CT and 09/2023-CT are not ultra vires s.168A of the Act, 2017: HCSun releases two solar storms - Earth has come in its wayRequisite Checks for Appeals - RespondentInheritance Tax row - A golden opportunity to end 32-years long Policy Paralysis on DTCThe Heat is on: Preserving Earth's Climate in the Face of Global WarmingVAT - Timeline for frefund must be followed mandatorily while recovering dues under Delhi VAT Act: SCIndia, Australia to work closely for collaborative projectsCX - All the information was available to department in 2003 itself, therefore, SCN issued four years after gathering information is not sustainable and is highly barred by limitation: HCPowerful voices of amazing women leaders resonated at UN Hqs75 International visitors from 23 countries arrive to watch world's largest elections unfoldCentre asks States to improve organ donation frequencyCus - Revenue involved in the appeal filed by Commissioner is far below the threshold monetary limit fixed by the CBEC, therefore, department cannot proceed with this appeal - Appeal stands disposed of: HCAdani Port to develop port in PhilippinesUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awarded
 
CX - Multilayered plastic collapsible tubes being fragile need to be protected during transport - Assessee clearing goods in special boxes over and above primary packing as per agreement with buyer - cost of secondary packing given specially at request of the customer not includible in AV: CESTAT

By TIOL News Service

MUMBAI, OCT 12, 2015: DURING the period 1.4.99 to 30.6.2000, the assessee cleared multilayered plastic collapsible tubes to M/s Sunshine Cosmetics Limited, Hyderabad , in special boxes over and above the primary packing per the agreement with the said party.

After receiving the material, M/s Sunshine Cosmetics would sell the special packing in the market and remit the sale proceeds to the appellant. The appellant had received Rs. 5,96,475/- as such sale proceeds. The appellant have paid excise duty amounting to Rs. 1,13,070/- on the said amount received from the buyer.

A demand notice was issued to the appellant seeking to include, in terms of clause (d) of subsection (4) of Section 4 of CEA, 1944, the value of the boxes in the assessable value. The total value of the boxes was ascertained as Rs.13,51,542/- and a duty of Rs. 3,06,886/- was demanded on the same.

The duty was confirmed by adjudicating as well as the appellate authority.

Before the CESTAT, the appellant argued that the special packing, in the nature of secondary packing, was for the purpose of transport of multilayered plastics collapsible tubes, which are fragile in nature, and hence had to be protected during the transport. It is further submitted that the cost of secondary packing was not includable in the assessable value in view of the apex court decision in National Leather Cloth Manufacturing Co. Ltd. - 2010-TIOL-53-SC-CX.

The AR reiterated the findings of the lower authorities.

The Bench observed that the issue of secondary packing has been dealt by the Apex Court in the case of Bombay Tyre International Ltd. - 2002-TIOL-374-SC-CX.

After extracting paragraphs 51 and 52 of the said decision, the CESTAT concluded -

"5. Since cost of secondary packing not ordinarily used and given specially at the request of customer, is not includible in the assessable value, the benefit of exclusion of the cost of special packing as a secondary packing has to be allowed to the appellant in terms of Section 4 of the Central Excise Act. The appeal filed by the appellants is consequential allowed."

(See 2015-TIOL-2173-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST