| Case ID |
2d242fb6-51f8-436c-bf59-8bbf49aa2b2f |
| Body |
View case body. Login to View |
| Case Number |
Customs Appeal No.153 of 2001 |
| Decision Date |
Oct 24, 2005 |
| Hearing Date |
Oct 24, 2005 |
| Decision |
The Lahore High Court dismissed the appeal by the Revenue, affirming that the learned Tribunal correctly disallowed the addition of incidental charges when determining the value for purposes of duty under the Central Excise Act, 1944. The Court noted that the appellant, Coca Cola, was the sole manufacturer of concentrates and that the franchised bottlers received the product at the factory gate, eliminating the need for additional charges such as octroi and transportation. The Court emphasized the importance of proximity in determining whether such charges should be included in the assessable value, ultimately concluding that the Revenue's approach was misconceived and not applicable in this case. |
| Summary |
This case revolves around the interpretation of the Central Excise Act, 1944, specifically Section 4, concerning the determination of value for excise duty. The Lahore High Court examined whether incidental charges could be added to the value of Coca Cola concentrates supplied to franchised bottlers. The Court found that no additional duties were applicable due to the proximity of the bottlers to the manufacturer, thus reinforcing the principle that transportation and handling charges could only be nominal. The ruling emphasized clarity in the application of excise duties and highlighted the necessity of adhering to judicial precedents while interpreting tax laws. This case serves as a significant reference point for future determinations regarding excise duty valuation and the inclusion of additional charges, ensuring that businesses understand their obligations under the law. Key terms include Central Excise Act, excise duty, Coca Cola, and taxation principles. |
| Court |
Lahore High Court
|
| Entities Involved |
Coca Cola Export Corporation
|
| Judges |
NASIM SIKANDAR,
JAWWAD S. KHAWAJA
|
| Lawyers |
Aftab Hassan,
Imtiaz Rashid Siddiqui
|
| Petitioners |
COLLECTOR OF SALES TAX,
CENTRAL EXCISE
|
| Respondents |
COCA COLA EXPORT CORPORATION
|
| Citations |
2006 SLD 1844,
2006 PTD 319
|
| Other Citations |
PLD 1995 SC 659,
Pakistan through Secretary Finance and another v. Kohat Cement Company and others PLD 1995 SC 659,
Atlas Battery Limited Karachi v. Superintendent Central Excise and Land Customs Circle `C' Karachi PLD 1984 SC 86,
Central Board of Revenue, Government of Pakistan v. Messrs Maple Leaf Cement Factory Ltd. 2002 PTD 1989
|
| Laws Involved |
Central Excise Act
|
| Sections |
4
|