Judgment

Kapadia, J.—A short question which arises for determination in these appeals filed by the department under Section 35-L(b) of the Central Excise Act, 1944 (for short “the said Act”) is - whether the assessee had undervalued the aerated water by excluding two items, namely, the amounts received under credit notes as price support incentive and rent on containers (ROC) from the assessable value?

2. For the sake of convenience, we mention hereinbelow the facts in civil appeal No. 772 of 2001, in the case of Commissioner of Central Excise, Meerut-I v. Bisleri International Private Limited (formerly known as M/s Coolade Beverages Ltd.).

3. M/s. Coolade Beverages Ltd. (hereinafter referred to as “the assessee”) were manufacturers of aerated waters. The manufacturing activity of the assessee basically consisted of bottling. The assessee obtained the concentrate (raw-material) for aerated water from a subsidiary of Coca Cola Corporation. The name of that subsidiary was M/s Britco Food Company Ltd. (hereinafter referred to as “M/s. Britco”). The assessee sold the bottled aerated water to the wholesale dealers.

4. The department found that the assessee used to collect from some wholesal