9911796707
TMI Blog1987 (12) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... harges recovered by the appellants towards testing, maintenance and handling of the gas cylinders belonging to the customers should be included in the assessable value of the gas supplied in the cylinders. The period in dispute is from 15-5-1980 to 16-3-1985. During this period, the appellants manufactured acetylene gas. The customers sent their own cylinders to the appellants. The appellants filled the gas in those cylinders and delivered them to the customers. The appellants had filed two price lists during this period. The gas itself was priced at Rs. 24 to Rs. 26 per cubic metre. A sum of Rs. 44/- per cylinder of 5 to 7 cubic metre capacity was recovered by the appellants from the customer additionally. The appellants declared this addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatutorily as per Gas Cylinders Rules, 1981 framed under the Indian Explosives Act, 1884. Rule 47 of the said Rules read as under :- "47. Examination of dissolved acetylene cylinders before filling. Whenever a cylinder is charged with acetylene, it shall be subjected to a thorough visual examinations, if the history of the cylinder shows that it has not been subjected to such an examination within the previous two years and at the same time the valves will be removed and the conditions of the porous substance at the neck of the cylinder ascertained. This period of periodical examination shall be one year in case the cylinders are filled with loose porous mass." The appellants stated that in order to fulfil the statutory requirements, a Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as and loading of filled cylinders on a conveyance takes place within the factory and prior to the delivery of the goods at the factory gate, the charges incurred thereon, as well as the cost of supervision over unloading, loading and filling have to be included in the assessable value. It is obvious that without such work within the factory, no delivery of the gas is possible at the factory gate. We, therefore, reject the plea of the appellants for exclusion of these charges amounting to Rs. 2/- per cylinder. 7. However, coming to the other exclusion asked for testing and maintenance of the customer's cylinders, we agree with the appellants that a cylinder means a cylinder fit for filling the acetylene gas. A gas cylinder is a durable con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances, repeated recovery of Rs. 42/- per cylinder by the appellants at the time of each trip of the cylinder appeared to us to be excessive. We put our observations to the appellants in the course of hearing before us. They stated very fairly that the Asstt. Collector could be directed to go into the costing of the testing and maintenance charges. 9. Therefore, while we order in principle that the charges incurred for testing and maintenance of buyer's cylinder should be excluded from the assessable value of the gas, we direct the Asstt. Collector to go into the costing of such charges and satisfy himself that there was no attempt at diverting a part of the true price of the gas to the cylinder cost. A reasonable margin of profit ev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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