MIS. ESSEL PROPACK LTD. versus COMMISSIONER OF CENTRAL EXCISE, MUMBAI-ILL

MIS. ESSEL PROPACK LTD. versus COMMISSIONER OF CENTRAL EXCISE, MUMBAI-ILL

The value of plastic caps supplied free of cost by customers to the assessee and fitted to the manufactured tubes should not be included in the assessable value of tubes if the caps are not manufactured in the same factory; remanded for Commissioner to record findings on facts.

Parties
Appellant: Essel Propack Ltd.; Respondent: Commissioner of Central Excise, Mumbai-III
Jurisdiction
India
Judgment Date
09 November 2011
Procedural Posture
Civil Appeal / Supreme Court Order on Appeal From Customs, Excise & Gold (control) Appellate Tribunal
Outcome
Appeals allowed to the extent indicated; impugned Tribunal and Commissioner orders set aside; matter remanded to Commissioner for fresh decision.
Legal Topics
Assessable Value, Inclusion of Accessory Value, Section 4 of Central Excise Act
Taxation Central Excise Assessable Value Inclusion of Accessory Value Section 4 of Central Excise Act

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Parties

Essel Propack Ltd.

Appellant

Commissioner of Central Excise, Mumbai-III

Respondent

Procedural Posture

Civil Appeal / Supreme Court Order on Appeal From Customs, Excise & Gold (control) Appellate Tribunal

Legal Issues

  1. 1 Whether the value of plastic caps fitted to tubes should be included in the assessable value of tubes for excise purposes when caps are supplied by customers free of cost

Ratio Decidendi

The value of plastic caps supplied free of cost by customers to the assessee and fitted to the manufactured tubes should not be included in the assessable value of tubes if the caps are not manufactured in the same factory; remanded for Commissioner to record findings on facts.

Court Disposition

Appeals allowed to the extent indicated; impugned Tribunal and Commissioner orders set aside; matter remanded to Commissioner for fresh decision.

Orders

  • Commissioner to record clear finding as to whether, for tubes cleared during relevant periods, caps were supplied free of cost by customers and accordingly pass a fresh order.
  • Impugned Tribunal and original Commissioner orders set aside.