- (1.) The question in these appeals is whether the amounts on account of "crate hire charges", "loading and unloading charges", "sales, promotion and publicity charges" were includible in the assessable value of the bottles which were manufactured by the respondent assessee. The period in question is 1/3/1994 to 31/10/1995.
(2.) The Commissioner (Appeals) had come to the conclusion, affirming the findings of the Assistant Commissioner, that they were so includible. As far as the crate hire charges were concerned, it was said that there was an increase in the rate of crate hire and this has not been satisfactorily explained by the appellant. It was found that the reason given by the appellant for the increase in the crate hire charges was misleading and incorrect. It was noted that there was at the same time a corresponding increase in the cost of production by reason of the increase in the quantum of the aerated water and the size of the bottles which were being manufactured. According to the commissioner, this additional cost of production had been "adjusted" with the increase in the crate hire charges.
(3.) The Tribunal, however, was of the view that crate hire charges were not includible. The chartered accountant of the assessee had certified that the cost of production had not been passed on under the head of increased crate hire charges. The Tribunal acted on the chartered accountant's certificate in view of the fact that the departmental authorities had not questioned the same. It was therefore of the view that the increase of the crate hire charges could at best be termed to be a profit on freight and that this was not includible in the assessable value.;