Judgment

Arijit Pasayat, J.—The Revenue is in appeal against the judgment rendered by the Customs Excise & Gold (Control) Appellate Tribunal, Bench, Calcutta (in short the ‘CEGAT’). Since there was a difference of opinion between the Member (Judicial) and the Member (Technical), the matter was referred to a third member i.e. another Member (Technical). By majority 108 appeals filed by the respondent (hereinafter referred to as the ‘assessee’) were allowed. There were essentially two issues involved. The first related to the question as to whether packing charges realized by the assessee from its customers in different situations for different types of packing would form part of assessable value of the final product or not to attract duty under the Central Excise and Salt Act, 1944 (in short the ‘Act’). Second question was whether some of the show-cause notices were issued beyond the period prescribed under Section 11A of the Act. The majority view was in favour of the assessee in respect of both the aforesaid issues.­

2. Dispute arose in the following background:

The assessee is engaged in the manufacture of various types of glass bottles for milk, soft drinks, medicines, hair-oil, be