Customs, Excise and Gold Tribunal - Delhi
Haryana Drinks (P) Ltd. vs Cce on 16 January, 1998
Equivalent citations: 1998(75)ECR556(TRI.-DELHI)
ORDER G.A. Brahma Deva, Member (J)
1. Case called. None appeared on behalf of the appellants. However, there was a request for adjournment. On going through the issue involved in this case, we find that the matter can be disposed of in their absence. Accordingly, we proceed to pass this order after hearing Shri Srivastava, SDR for the revenue.
2. Whether the following charges are to be included or not is an issue:
1. Unloading of filled bottles crates at customers' premises by their workers;
2. Re-sorting of mixed empty bottles into separate brands.
3. Loading of empty bottles crates into trucks from customers' premises by their workers.
4. Compensation of breakage of empty bottles.
5. Compensation for damaged/breakage of wooden crates.
3. The Additional Collector, who adjudicated the proceedings, held that since these were essential marketing expenses, they were required to be included in the assessable value under the provisions of Section 4 of the Act.
4. The Hon'ble Supreme Court in the case of Viyayawada Bottling Co. Ltd. held that service chargesempty bottles of aerated water returned from customersservice charges realised for unloading brandwise sorting, broken bottles sorting and cleaning and examination of bottles are not includible in the assessable value of the aerated water since such activities relate to preparing the bottles for bottling and cannot be treated as part of the manufacturing process of aerated water. Since the issue has been considered by the Apex Court, following the ratio of the aforesaid decision, we accept the contention of the assessee and, accordingly, we set aside the impugned order. In the result, the appeal is allowed.
(Dictated in Court).