Central Excise - Valuation - Cost of returnable gunny bags used for packing excisable goods - whether there was an agreement to return packing material - Difference of opinion in Supreme Court Bench
TODAY we bring you an interesting judgement of the Supreme Court delivered yesterday.
The question involved is rather simple - whether the cost of gunny bags used for packing soda should be excluded in arriving at the assessable value. The assessee's contention that the gunny bags were returned was not accepted by the Tribunal.
The question is perhaps as old as Central Excise itself. In this particular case, the litigation started somewhere in 1970 - yes, 45 years ago and the issue is still not settled. Yesterday's judgement of the Supreme Court pertains to the period 1981-1985. The case had already gone through a Three-judge Bench and a Constitution Bench and is now with a Division Bench.
In the Division Bench there was a difference of opinion between the two judges.
One Judge allowed the appeals of the assessee and remanded the case to the Adjudicating Authority, while the other Judge dismissed the appeals.
It is not mentioned whether the case has to go to a Larger Bench or whether the matter is placed before the Chief Justice.
It may take a little more time to know the outcome of this case. In the meanwhile for the details of the case, please see Breaking News.