YATINDRANATH SHUKLA AND ORS. KANPUR versus COLLECTOR OF CENTRAL EXCISE, KANPUR

Citation: [1997] SUPP. 6 S.C.R. 359 · Decided: 09-12-1997 · Supreme Court of India · Bench: S.C. SEN, M. SRINIVASAN · Disposal: Disposed off
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Judgment (excerpt)

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YATINDRANATH SHUKLA AND ORS. KANPUR 
A 
v. 
COLLECTOR OF CENTRAL EXCISE, KANPUR 
DECEMBER 9, 1997 
(S.C. SEN AND M. SRINIVASAN, JJ.] 
B 
Excise Law: 
Central Excises and Salt Act, 1944 : Section 4. 
Excise duty-Exemption of-valuation-Method orHeld: Is the same C 
as for levy of duty-Hence, value per kg of chewing tobacco for pwpose of 
Exemption Notification No. 35/79-CE dated 1.3.1979 as amended by 
Notification No. 151/79-CE dated 30.3.1979 is to be anived at by dividing the 
total value of the package in its entirety by the total weight of the package and 
not by the 11et weight of the co11tents of the package-Central Excise Rules, D 
1944, R. 8(1)----Additional Duties of Excise (Goods of Special Importance) 
Act, 1957, S. 7(3) 
Excise duty-Packing mate1ial-Value of-lncludibility in-Held : For 
pwpose of aniving at excise duty the value of packing maten"al should also 
be included to anive at the assessable value of excisable goods. 
E 
The appellant-assessee was a manufacturer of chewing tobacco. The 
Customs, Excise & Gold Control Appellate Tribunal held that the value 
per kilogram of chewing tobacco had to be arrived at by dividing the value. 
of the total package by the net weighf of the tobacco after excluding the 
weight of the packing material from the weight of the total package for the 
purpose of Exemption Notification No. 35/79-CE dated 1.3.1979 as 
amended by Notification No. 151/79-CE dated 30.3.1979. The Tribunal 
further held that for purpose of levying excise duty the value of the packing 
material should be excluded to arrive at the assessable value of the 
excisable goods. Hence this appeal. 
On behalf of the appellant-assessee it was contended that for arriv-
ing 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. 
Disposing of the appeals, this Court 
359 
F 
G 
H 
360 
SUPREME COURT REPORTS (1997] SUPP. 6 S.C.R. 
A 
HELD : 1. For the purpose of levying duty under the provisions of 
B 
the Central Excises and Salt Act, 1944 the value of the packing materials 
should also be included to arrive at the assessable value of the excisable 
goods. [360-G] 
Govemment of India v. Madras Rubber Factwy, [1995) 4 SCC 349, 
relied on. 
2. 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 
C the value of the goods for the purpose of exemption. Hence, for the purpose 
of exemption Notification No. 35/79-CE dated 13.1979 as amended by 
Notification No. 151/79-CE dated 30.3.1979 the value of the chewing tobac-
co per kilogram shall be arrived at by dividing the total value of the 
package in its entirety by the total weight of the package. [361-A; 362-A-C] 
D 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 3030-31 
E 
of 1989 Etc. 
From the Judgment and Order dated 27.3.89 of the Customs, Excise 
and Gold Control Appellate Tribunal, New Delhi in Order No. 155- 156 
of 1989-A. 
V. Laxmikumaran, V. Shridharan, T. Vishwanathan and V. 
Balachandran for the Appellants. 
R. Chaudhary and V.K. Verma for the Respondents. 
F 
The Judgment of the Court was delivered by 
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,· 
G has already been concluded by the judgment of this Court Govemment of\ 
India and Others v. Madras Rubber Factory and Otlze1:1-, [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 
H Tribunal has directed the exclusion of the value of packing materials and 
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YATINDRANATHSHUKLAv. C.C.E.(SRINIVASAN,J.] 
361 
thus the Revenue is aggrieved. In view of the aforesaid judgment of this A 
Court, the appeals of the Revenue are hereby allowed to that extent. 
2. The other question which arises for consideration relates to the 
method 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 far as it is relevant
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