12 November 2008
It is an intregal part of cost if the supply of goods can not be made without packing material. say for e.g for supply of Glass, you need to pack it into boxes than cost of packing material is included in valuation of goods.For further clariffication see the rules of excise act.
18 November 2008
Circular Dt 1.7.02 has clarified that if packing material is provided by the buyer, price would not be the sole consideration and therefore valuation has to be done as per Rule 6 of the valuation rules, 2000 and the cost has to be considered for the valuation. Further if such packing material can be repeatedly used, the cost has to be amortized.
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