Royal En field (Unit of M/s. Eicher Ltd.) Vs CCE (Supreme Court of India)- In the decision of Government of India v. Madras Rubber Factory Ltd. reported at 1995 (77) ELT 433 (SC) a three-Judge Bench of this Court held that where the goods are delivered in a packed condition at the time of removal the cost of such packing shall be included. While recording the aforesaid conclusion this Court took notice of the aforesaid definition of value as given in sub-Section 4 of Section 4 of the Act. After noticing the aforesaid definition it was held that the provision in the sub-clause is a plain one and does not admit of any ambiguity as what it says is that where the goods are delivered in a packed condition, at the time of removal, the cost of such packing shall be included and that only where such packing is of a durable nature and is returnable by the buyer to the assessee, should the cost of such packing be not included in the value of the goods.
It was held by Honourable SC that The packing which is given by the appellant-company to their motorcycles is necessary for putting the excisable article in the condition in which it is generally sold in the wholesale market at the factory gate and, therefore, such cost is liable to be included in the value of the goods and the cost of such packing cannot be excluded.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 4406 of 2010
M/s. Royal En field (Unit of M/s. Eicher Ltd.) ….Appellant
Vs
Commissioner of Central Excise, Chennai ….Respondent
JUDGEMENT
Dr. MUKUNDAKAM SHARMA, J.
1. By this judgement and order we propose to dispose of this appeal which is filed by the appellant-company challenging the judgement and order dated 24.11.2009 of the Customs, Excise and Service Tax Appellate Tribunal [for short “the Tribunal”], Chennai, whereby the Tribunal rejected the appeal filed by the appellant and upheld the order of the Commissioner of Central Excise [Appeals], Chennai.
2. The issue that arises for our consideration in the present case is as to whether the cost of packing charges expended/incurred by the appellant-company is liable to be included in the asses-sable value of the motorcycles manufactured by the appellant-company.
