COMMISSIONER OF CENTRAL EXCISE Vs. M/S SRF LIMITED, MANALI
SUPREME COURT OF INDIA
COMMISSIONER OF CENTRAL EXCISE
M/S Srf Limited, Manali
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(1.) The respondent, namely, M/s SRF Limited, Manali Chennai is inter alia engaged in the manufacture of
Filament Yarn of various deniers meant for use in the
manufacture of tyre Cord Fabrics except 210 denier. The
goods are exigible to excise duty. While clearing the
goods the respondent has been declaring the value thereof
but in that the cost of packing material was not
included. The department herein issued show cause notice
to the respondent as to why the cost of packing material
be not included and passed order confirming the demand
raised in the show cause notice treating the cost of
packing material as the component of transaction
valuation under Section 4 of the Central Excise. The
order of the adjudicating authority was challenged by the
respondent assessee by filing an appeal before the
Commissioner. Though, initially the matter was remanded
back, the adjudicating authority, however, reiterated
its earlier view whereupon the respondent filed the
appeal to the Commissioner (Appeals) once again. This
time the Commissioner (Appeals) allowed the appeal of the
respondent vide order dated 21.11.2007 and the order has
been upheld by the CESTAT also by its order dated
28.3.2008 dismissing the appeal of the appellant.
(2.) The finding to the effect that the packing material which was used was durable and returnable by the
buyer has come on record. On the basis of this finding
the decision has been arrived at, which is the correct
view in law. For this purpose, the Tribunal also relied
upon the judgment of this Court in K. Radha Krishnaiah
vs. Inspector of Central Excise and Others, 1987 (27) ELT
598, Mahalakshmi Glass Works (P)Ltd. Vs,. Collector of Central Excise, 1988 (36) ELT 727 and Triveni Glass Ltd.
vs. Union of India and Ors. (2005) 3 SCC 484.
In view of the above, we do not find any merit
in the appeal which is, accordingly, dismissed.;
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