COLLECTOR OF CENTRAL EXCISE versus PONDS INDIA LTD.

COLLECTOR OF CENTRAL EXCISE versus PONDS INDIA LTD.

Packing costs, whether primary or secondary, are includible in the assessable value for excise duty if such packing is required to make the goods marketable in the wholesale market at the factory gate; the question is whether goods are generally so sold, not whether they could be so sold without particular packing.

Parties
Appellant: Collector of Central Excise; Respondent: Pond's India Ltd.
Jurisdiction
India
Judgment Date
19 October 1989
Procedural Posture
Civil Appeal / Supreme Court Appeal From Tribunal
Outcome
Appeal allowed; judgment and order of Tribunal set aside; matter remanded to Tribunal for fresh determination.
Legal Topics
Valuation for Excise Duty, Cost of Packing, Section 4(4)(d)(i) Central Excises and Salt Act
Excise Law Valuation for Excise Duty Cost of Packing Section 4(4)(d)(i) Central Excises and Salt Act

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Parties

Collector of Central Excise

Appellant

Pond's India Ltd.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From Tribunal

Legal Issues

  1. 1 Whether cost of secondary packing for transportation is includible in the assessable value of goods for excise duty under Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944

Ratio Decidendi

Packing costs, whether primary or secondary, are includible in the assessable value for excise duty if such packing is required to make the goods marketable in the wholesale market at the factory gate; the question is whether goods are generally so sold, not whether they could be so sold without particular packing.

Court Disposition

Appeal allowed; judgment and order of Tribunal set aside; matter remanded to Tribunal for fresh determination.

Orders

  • Matter remanded to Tribunal to determine whether secondary packing is required for sale in wholesale market at factory gate, as per directions.
  • No order as to costs.