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2012 (10) TMI 382 - AT - Central ExciseValuation of aerated waters - whether rental charges was to be added to the assessable value or to be allowed as deduction - Held that:- Renting of containers in the case of packing of gases and liquids in reusable containers is a common trade practice. This is an ancillary or allied venture and the gains or profits from this activity are not to be added to the assessable value of the goods as decided in INDIAN OXYGEN LTD. Versus COLLECTOR OF C.E. [1988 (7) TMI 58 - SUPREME COURT OF INDIA]. The show-cause notices issued did not question the correctness of the amount claimed as rental on crates amounting to Rs. 15.23. On behalf of the assessee, it was also submitted that the rental could vary based on the nature of crates such as plastic or wooden. Thus the Commissioner despite having rejected the allegation of relationship, accepted the sale price, and in-principle accepted the deduction towards rental charges, has given no valid reasons to disallow part of the value claimed towards such rental on crates especially in the absence of any allegation that the amount claimed was inflated with a view to suppress the assessable value - in favour of assessee. Commissioner dropped the demand on the portions of value representing cost of advertisement and on the notional interest on advance deposit - Held that:- Regarding the dropping of demand on advertisement expenses as these expenses cannot be attributed to activities aimed at promotion of the product. Therefore, the Commissioner's reliance placed on the decision in the case of Philips India Ltd. [1997 (2) TMI 120 - SUPREME COURT OF INDIA] cannot be faulted - dropping of the demand relating to advance deposits as the department is presuming that such deposits must have been taken from all dealers on the ground that aerated waters could be supplied only in bottles and carried in crates. Such presumption cannot be the basis for confirming a demand. No evidence was adduced to show that taking a deposit has reduced the assessable value of the subject goods - in favour of assessee.
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