Full Judgment Text
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PETITIONER:
M/S. YATINDRANATH SHUKLA & CO, KANPUR ETC. ETC.
Vs.
RESPONDENT:
COLLECTOR OF CENTRAL EXCISE, KANPUR ETC. ETC.
DATE OF JUDGMENT: 09/12/1997
BENCH:
S.C. SEN, M. SRINIVASAN
ACT:
HEADNOTE:
JUDGMENT:
J U D G M E N T
SRINIVASAN, J.
These appeals are directed against the order of the
Customs Excise & Gold Control Appellate Tribunal, New Delhi.
Civil appeal Nos. 3030-31 of 1989 are by the assessee while
the other appeals are by the Revenue. Two questions arise
for consideration. One of them has already been concluded
by the judgment of this Court Government of India and others
Versus Madras Rubber Factory and others (1995) 4 S.C.C. 349.
In that case it has been held that for the purpose of
levying duty under the provisions of the Act the value of
the packing materials should also be included to arrive at
the assessable value of the excisable goods. The Tribunal
has directed the exclusion of the value of packing materials
and thus the Revenue is aggrieved. In view of the aforesaid
judgment of this Court, the appeals of the Revenue are
hereby allowed to that extent.
2. The other question which arises for consideration
relates to the mathod of arriving at the value of chewing
tobacco per kilogram under Notification No. 35/79 C.E. dated
1.3.1979 as amended by Notification No.151/79 C.E. dated
30.3.1979. The Notification in so for as it is relevant
reads as follows:
Exemption to chewing tobacco.- In
excise of the powers conferred by
sub-rule (1) of Rule 8 of the
Central Excise Rules 1944, read
with sub-section (3) of Section 3
of the Additional Duties of Excise
(Goods of Special Importance) Act,
1958 (58 of 1957), the Central
Government hereby exempts chewing
tobacco of the descreption
specified in colum (1) of the Table
hereto annexed and falling under
sub-item 11 (5) of Item No.4 of the
First Schedule to the Central
Excise and Salt Act 1944 (1 of
1944) from so much of the duty of
excise leviable thereon both under
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the Central Excise and Salt Act,
1944 (1 of 1944) and the Additional
Duties of Excise (Goods of Special
Importance) Act 1957 (58 of 1957)
as is in excess of the duty
specified in corresponding entry in
column (2) thereof.
THE TABLE
------------------------------------------------------------
Description Rate of duty
------------------------------------------------------------
Chewing tobacco of which the value
per one kilogram -
(i) does not exceed rupees ten
(ii) exceeds rupees ten fifteen per cent
and valorem
Twenty five percent
ad valorem
3. The contention of the assessee s that for arriving at
the value per kilogram of chewing tobacco the total value of
the entire package should be divided by the total weight of
the package. The contention of the Revenue is that the
value of the tobacco has to be arrived at by dividing the
value of the total package divided by the net weight of the
tobacco after excluding the weight of the packing materials
from the weight of the total package. It is argued by the
Revenue that the Notification uses the expression "
chewing tobacco" and speaks of value per one kilogram.
According to learned counsel it would mean tobacco before
its being packed and the weight thereof.
4. There is no merit in this contention. When for the
purpose of assessing the value and levying the duty, the
total value of the package is taken as assessable value of
the goods under Section 4 of the Act, the same method shall
be applied for assessing the value of the goods for the
purpose of exemption. We accept the contention of the
assessees in this regard and hold that for the purpose of
exemption notification the value of the chewing tobacco per
kilogram shall be arrived at by dividing the total value of
the package in its entirety by the total weight of the
package.
5. The view expressed by the Tribunal to the contrary is
erroneous and therefore the order of the Tribunal
is set aside to that extent. The appeals are disposed
accordingly. The Assistant Collector shall pass appropriate
orders in accordance with the above decision.