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2022 (8) TMI 493 - AT - Central ExciseValuation - transaction value under section 4 (1) (a) of the Central Excise Act, 1944 - collection of some charges in the name of the Cylinder Holding Charges [CHC] from its customers if the customers do not return the re-usable cylinders within a specified period - inclusion in the assessable value or not - HELD THAT:- The appellant are not liable to pay central excise duty on the rental charges, as has been decided in its own case by the Tribunal in M/S LINDE INDIA LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE [2018 (12) TMI 1954 - CESTAT NEW DELHI] where it was held that similar issue came up before the Tribunal in the case of BOC INDIA LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI-I [2004 (1) TMI 246 - CESTAT, KOLKATA] wherein it was held that the said charges are not, in any way, related to or connected with the sale of the Gases. As such, the same cannot be said to be includible in the definition of the “transaction value‟, as is appearing in the provisions of Section 4(3)(d). Additional Consideration for sale or not - HELD THAT:- The appellant is not charging CHC as a condition for sale of its gases. In fact, any customer can buy the gas without paying the CHC and return the cylinder within the time and in such a case no CHC will be payable by the customer to the appellant. If the customer delays returning the cylinder the appellant recovers CHC from the customer in the form of a penalty for delayed return of the cylinder. Central excise duty should be charged on the value of gas for delivery at time and place of removal i.e. at the factory gate. This price does not include the CHC. The CHC is charged only if, after delivery, the customer does not return the cylinder in time. Therefore, it cannot be called an additional consideration for sale but can only be a penalty for not returning the cylinder within time after the sale is completed. Thus, the CHC is not includable in the assessable value - appeal allowed - decided in favor of appellant.
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