TMI Blog1990 (10) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... nder contract No. JOC/AGR/8 dated 31-8-1978, effective from 1-9-1978, and the price list No. 29/JOC/78 dated 7-8-1978 effective from 1-9-1978 got approved for Rs. 2.70 per Cu. Mtr. of Oxygen Gas. This Price was inclusive of handling charges @ 0.25 per Cu. Mtr. of gas and continued up to 31-7-1979. 1.3 On 18-6-1979, the party executed another contract No. EAP/AGR/13 with the said buyer which was effective from 1-8-1979. In the terms and conditions of this contract there was no clause about handling charges and accordingly the price list No. 34/JOXY/79 dated 28-7-1979 effective from 1-8-1979 for Rs. 2.85 per Cu. Mtr. was approved without including the handling charges. 1.4 On 20-2-1981 the Assistant Collector, Central Excise Jabalpur alon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -do- Rs. 14,319.98 @ 15% Rs. 2148.00 - 19-6-1980 to 30-6-1980 7245.62 -do- Rs. 1,811.40 @ 75% of 15% Adv. Rs. 203.78 10.19 1-7-1980 to 31-1-1981 147418.55 -do- Rs. 36,854.63 @ 75% of 15% Adv. Rs. 4146.15 207.31 Total : 13591.62 217.50 1.7 The party, in his letter dated 5-5-1981 has stated that their prices are based on ex-factory basis and are exclusive of any post-manufacturing expenses which have no bearing on the manufacturing cost and which are incurred only by them for the convenience of the customers. Cylinder handling charges come in this category. These charges represent, the unloading charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent appeal is against the said order of the Additional Collector. 2. During the hearing before us Shri Kohli for the appellants relied upon the following decisions in support of his contention that the handling charges of Gas cylinders were not includible in the assessable value of gas . (i) 1987 (30) E.L.T. 304 (Tri.) = 1985 ECR 1417 (Cegat) The Collector of Central Excise, M.P., Indore v. M/s. Jabalpur Oxygen Company, Jabalpur (M.P.) (ii) 1986 (23) E.L.T. 394 (Bom.) = 1989 (20) ECR 404 (Bom.) Govind Pay Oxygen Ltd. v. Assistant Collector Central Excise, Panaji Ors. (iii) 1988 (36) E.L.T. 723 (S.C.) Indian Oxygen Ltd. v. Collector of Central Excise 3. Shri Kohli has argued that the show cause notice was issued on 22-8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the price declared in the price list did not include the handling charges. 5. We have considered the arguments and have gone through the records of the case. The appellants realised cylinder handling charges @ 0.25 P for Cub. Mtr. of their supply. The recovery of these charges were made through debit notes. In paragraph 1.7 of the impugned order the Additional Collector has stated that the cylinder handling charges represents unloading charges of the cylinders from the vehicle in which they are brought in the factory, stacking charges and also loading charges of the cylinders in the vehicle in which they have to go out of the factory . In Paragraph 5 of the judgment reported in 1988 (36) E.L.T. 723 (SC), the Hon ble Supreme Court held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian Oxygen Ltd. This judgment is not quite relevant to the point in dispute in the present case as the issues decided in that judgment are different from the issue in dispute in the present case. He has relied on a decision of the Tribunal reported in 1985 ECR 1417 (Cegat) (supra). In the said decision the Tribunal held that the delivery and collection charges cannot be included in the assessable value as they are charges in lieu of the expenses incurred after removal of the goods from the factory gate and do not relate to the manufacturing process. The charges included in the present case do not represent the expenses incurred after removal of the goods from the appellants factory. These are the charges incurred by the appellants before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x-factory basis and exclusive of Excise duty, sales tax, octroi and any other levy that the Government may impose from time to time which will be on an actual basis. 2. Delivery Collection of cylinders You will arrange for collection of full cylinders from our factory and also shall return the empties to our factory. In case we are required to arrange transportation, then the actual cost incurred by us will be recovered from you." In this agreement it is not stated that the rate of Rs. 2.85 per cubic meter includes handling charges of the cylinders in their factory. Clause 2 of the agreement says that in case the appellants are required to arrange transportation of cylinders then the actual cost incurred by the appellants on transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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