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Commissioner of Central Excise, Belapur/Raigad Versus Inox Air Products Ltd

2016 (1) TMI 918 - CESTAT MUMBAI

Rent or compensation charges for the loss or damage - whether will form part of the transaction value and duty is required to be paid on the said amount? - Held that:- In appellants own case, the Bangalore bench of the Tribunal [2008 (6) TMI 427 - CESTAT, BANGALORE ] held that the rental charges are leviable when the cylinder is retained for a period longer than the stipulated time. When such is the case, how can one hold that such charges are in relation to the sale of the gases? Hence, we do n .....

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s are being taken up together. In all the four appeals, the appellant is revenue. Respondent is Inox Air Products Ltd. However, different appeals pertain to different units of Inox Air Products Ltd. Appeal no. E/3407, 3408/04 pertains to Inox Air Products Ltd., A/2, TTC Indl. Area, Pawne, Navi Mumbai. Appeal no. E/3482/04 pertains to Inox Air Products Ltd., A/5, MIDC Indl. Area, Patalaganga& E/483/05 pertains to Inox Air Products Ltd., C/109 & 110, TTC Indl. Area, Pawne, Navi Mumbai. 2. .....

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linders beyond the free loan period, the respondent charges rent for which the cylinders are retained by the customers beyond the free loan period. Further, if the cylinders are damaged or lost by the buyers, the respondent charges for the loss or damage. Revenues contention is that the rent or compensation charges for the loss or damage will form part of the transaction value and duty is required to be paid on the said amount. In the impugned order, Commissioner (Appeals) has dropped the demand .....

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ds. It is also submitted that rent and other charges could be termed as marketing charges inasmuch the industrial gases can never be marketed without the cylinders. The inherent nature of industrial gases requires specific equipment for it to be transported and thereby marketed. Further the empty cylinders individually are defunct. They are used to only fulfill their utility of transporting industrial gases. Further the concept of outward handling has a special meaning in the instant case. The c .....

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2010 (250) ELT 60 CCE vs. Kanoria Chem & Inds. Ltd. 2010 (261) ELT 265 Grasim Industries 2004 (164) ELT 257 Bhoruka Gases Ltd. 2008 (224) ELT 577 Govind Poy Oxygen Ltd. 2008 (231) ELT 299 BOC India Ltd. 2004 (175) ELT 236 Goyal M. Gases P. Ltd. 2014 (309) ELT 327 CCE vs. Indian Air Gases Ltd. 2015 (318) ELT 434 In support of his contention that the charges collected has nothing to do with the goods i.e. industrial gases and therefore, would not form part of the assessable or transaction valu .....

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ssable value of the gas sold or not. In the impugned order, the Commissioner (Appeals) has held that the said charges are part of the Transaction Value and, therefore, they are includible. The learned Advocate stated that the issue is covered by the Hon'ble Apex Courts decision in the case of Indian Oxygen Ltd. - 1988 (36) E.L.T. 723 (S.C.) and also the Tribunals decision in the case of Grasim Industries Ltd. - 2004 (164) E.L.T. 257 (Tri). In spite of the well settled legal position, the low .....

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