PROCTOR & GAMBLE HYGIENE&HEALTH CARE LTD vs. COMMNR. OF CENTRAL EXCISE, BHOPAL

C.A. No.-003844-003844 - 2000Supreme Court28 November 20056 pages
For Respondent: P. PARMESWARAN
AI SummaryRemanded

What did the Supreme Court hold?

The Tribunal failed to decide the crucial issue of determining the assessable value of the bulk packs and whether the repacking activity constituted manufacture at the relevant time. The Supreme Court found that these questions were not adequately addressed.

What were the facts?

The assessee cleared detergent powder in bulk packs, which were then repacked into smaller sachets by a third party. The department sought to include the repacking charges in the assessable value, alleging suppression of facts.

What were the issues?

Whether the cost of repacking detergent powder into sachets, which did not amount to manufacture at the time, was includible in the assessable value of the bulk packs. Whether the assessee was guilty of suppression of facts given the subsequent amendment to the law treating repacking as manufacture.

Which sections of the Income-tax Act were involved?

Section 4(1)(a),Section 2(f),Section 11A(1)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 6 CASE NO.: Appeal (civil) 3844 of 2000 PETITIONER: Procter & Gamble Hygiene & Health Care Ltd. RESPONDENT: Commissioner of Central Excise,Bhopal. DATE OF JUDGMENT: 28/11/2005 BENCH: ASHOK BHAN & S.H. KAPADIA

JUDGMENT: J U D G M E N T KAPADIA, J.

This is a statutory appeal under section 35-L (b) of the Central Excise Act, 1944 (hereinafter referred to as "the said Act") against the judgment and order dated 19.6.2000 passed by the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi ("tribunal" for short). A short question which arises for determination in this civil appeal is \026 whether, on the facts and circumstances of this case, cost of repacking of detergent powder into 20 gms. and 30 gms. sachets, which did not amount to manufacture at the relevant time, was includible in the assessable value of "ariel micro-system" (AMS) cleared by Procter & Gamble ("assessees" for short") in bulk packs of 25 kgs. at its factory gate at Mandideep, Bhopal.

Assessees \026 appellants are engaged in the manufacture of detergent powder (AMS)

The order continues below.

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