2004 (12) TMI 216 - AT - Central Excise

Summary

Issues:
Claim of unloading, testing, repair, and rental charges not part of manufacturing process of industrial gases.

Analysis:
The appellant, a manufacturer of industrial gases, appealed against an Order-in-Appeal confirming duty on charges for loading, unloading, testing, and repair of cylinders from customers. The appellant argued that expenses on maintenance of empty cylinders are not part of manufacturing activity. The Revenue contended that these expenses incurred in the factory are includible in the assessable value of industrial gases.

The Tribunal considered the appellant's claim that charges for unloading, testing, repair, and rental of cylinders are not part of the manufacturing process of industrial gases. Citing the judgment of the Hon'ble Supreme Court in a similar case, the Tribunal found that activities related to ensuring the availability of empty cylinders for reuse should be treated as part of the process of packing, not manufacturing. The Tribunal noted that charges for maintenance and repairs of durable and returnable containers were not includible in the assessable value of gas in a previous case.

Based on the Supreme Court's decision and the analogy drawn with previous cases, the Tribunal held that unloading, testing, repair, and rental charges of cylinders are not includible in the assessable value of industrial gases. Consequently, the appeal was disposed of in favor of the appellant.