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Judgment
The appeal is against order dated 11.06.2007 of Commissioner (Appeals-I) Jaipur. The dispute involved in the present appeal is the includability of
value of corrugated boxes obtained free of cost from the buyers in the assessable value of excisable goods like PET jars, HDPE Tanks PVC profiles
etc. manufactured and cleared by the appellant. The lower authorities held that the value of such corrugated boxes are to be added to arrive at the
correct transaction value in terms of Section 4 read with Rule 6 of Central Excise Valuation Rules, 2000.
The appellant contested such inclusion on the ground that the cost of packing materials obtained free of cost are not to be included in the assessable
value and in this context, relied on the decision of Hon’ble Supreme Court in Hindustan Polymers vs CCE, reported in 1989 (43) ELT 165 (S.C.).
We have heard both the sides and examined the appeal records.
In the present case, the appellants obtained packing materials from their buyers and they are not adding the cost of packing material for
determination of the assessable value. It is seen that they have been availing Cenvat Credit on such packing material. We find that the only claim of
the appellant for noninclusion of value of packing material is that the same is obtained free of cost. We find that the appellants availed cenvat credit on
such items, which goes to show that they are essential inputs in the manufacture and sale of finished excisable goods. In such context, the claim of the
appellant is not tenable. Further there is no plea to the effect that the excisable goods are otherwise marketable without such packing.
Considering the above position, we find no merit in the present appeal and the same is accordingly dismissed.
(Operative portion of the order pronounced in the open court)