Customs, Excise and Gold Tribunal - Mumbai
Dipak Vegetable Oil Industries vs Cce on 11 December, 1997
Equivalent citations: 1998(74)ECR770(TRI.-MUMBAI)
ORDER
U.L. Bhat, J. (President)
1. The dispute in the appeal arises in relation to two refund claims in respect of the period from 4.2.1975 to 30.9.1975 in respect of a part of excise duty paid by the appellant on vegetable oil manufactured and cleared from the factory. Duty had been paid on assessable value which included cost of metal containers used to pack vegetable oil. According to the refund claim, the cost of metal container or packing was post-manufacturing expenditure and, therefore, cost thereof cannot form part of assessable value. Ultimately rejection of refund claims is in question in this appeal.
2. After two remands and supplementary show cause notice, the Assistant Collector ultimately passed an order on 15.3.1988 holding that packing in metal containers was a must for the purpose of delivery at the factory gate in wholesale trade and the containers were not durable or returnable. Dismissal of the appeal preferred by the appellant against the above order has led to the present appeal.
3. There is no evidence to show that any part of the vegetable oil manufactured by the appellant was sold in loose condition at the factory gate. On the other hand, it is not disputed in the Memorandum of appeal that entire quantity of vegetable oil manufactured by the appellant is packed in metal containers and cleared from the factory gate in that condition. There is also no evidence to show that the metal containers were returnable as per agreement or understanding between the parties or as per trade practice. In these circumstances the finding that cost of metal containers was includible in the assessable value and therefore no refund was available is sustainable. The appeal is disposed of.