M/S. TATA CHEMICALS LTD. vs. COLLECTOR OF CENTRAL EXCISE

C.A. No.-007251-007302 - 2000Supreme Court06 August 201547 pages
For Petitioner: RAJAN NARAINFor Respondent: B. KRISHNA PRASAD
AI SummaryDismissed

What did the Supreme Court hold?

The Tribunal rightly rejected the appellant's claim for exclusion of the cost of gunny bags. The appellant failed to establish a clear arrangement for the returnability of gunny bags with its customers, which is a prerequisite for such exclusion.

What were the facts?

The appellant, Tata Chemicals Ltd., sought to exclude the value of gunny bags used for packing soda ash from the assessable value for excise duty. The dispute spanned several periods, with the core issue being the existence of a returnable packing arrangement with customers.

What were the issues?

Whether the value of durable and returnable packing material (gunny bags) should be excluded from the assessable value of soda ash for excise duty purposes, and if so, whether a valid arrangement for returnability was established.

Which sections of the Income-tax Act were involved?

Section 4

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Cases cited in this judgment(4)Show list

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Cause title — parties, addresses and appearances
Page 1 JUDGMENT REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOs. 7251-7302 OF 2000 M/s. Tata Chemicals Ltd. ... Appellant Versus Collector of Central Excise, Ahmedabad ... Respondent

J U D G M E N T Dipak Misra, J. In this batch of appeals, the appellant calls in question the assailability of judgment and order dated 6.9.2000 passed by the Customs, Excise and Gold Control (Appellate) Tribunal, New Delhi (for short ‘the tribunal’) in Appeal Nos. E/1073-1090/90-A, E/4285-4289/90-A, E/4293-4294/91- A, E/4296-4322/91-A, whereby the tribunal has not accepted the letters dated 15.12.1970, 01.02.1971 and 02.04.1971 to bring out the arrangement for the return of durable packing, namely, gunny bags, for reuse as packing material for selling the soda ash in bulk. The tribunal has Page 2 JUDGMENT further opined that assessee’s effort to establish that there was an arrangement between the manufacturer and their customers to return the durable packing, namely, gunny bags, and accordingly the claim put forth by them that the value of gunny bags used for packing soda ash manufactured by them should be excluded in finding out

The order continues below.

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