TMI Blog2007 (9) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... B/2006/C-III(EB), dated 7-9-2006. 2. Heard both sides. 3.1 The relevant facts, in brief, are as follows (a) M/s. Vadilal Gases Limited, hereinafter referred to as VGL, buy gases like Nitrogen, Argon and other mixtures from M/s. GFSC. (b) VGL received liquefied Nitrogen and Argon gases in bulk in cryogenic tankers. The VGL undertakes re-gassification and pack in cylinders of 6 cu.m. or 7 cu.m. capacity for retail sale. (c) M/s. Vadilal Chemicals Limited, hereinafter referred to as VCL, which is a sister, concern of VGL is a marketing company. The cryogenic tankers which bring liquefied Nitrogen, Argon gases in bulk are owned by VCL. The cylinders in which the gases are filled for retail sale are owned by VGL. (d) After packin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the consumers and therefore the same are re-gassified and thereafter a predetermined quantity of the gases is packed in the cylinders which have been to tally cleaned and made free of impurities of Oxygen, Coz, etc. In addition he that VGL are preparing gas mixtures which are used for different industrial applications and these gas mixtures are also sold after re-packing the same in retail cylinders. Commissioner has held that the decision of the Tribunal in the case of M/s. Ammonia Supply Company v. CCE, New Delhi [2001 (131) E.L.T. 626] is not applicable to the instant case. He also held that the decision of the Tribunal in the case of M/s. Ram Kishore Chemicals Co. Ltd. is not good law. Accordingly he confirmed the demand of duty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons and therefore the value at which VCL sells the product, shall be the assessable value for the purpose of Central Excise duty. While defending the said show cause notices, the appellants have raised a more fundamental issue as to whether the activities undertaken by VGL will amount to manufacture at all. 6.2 The liquefied Nitrogen and Argon gases are being received in cryogenic tankers. 6.3 The tanker used for transporting liquefied gases cannot be treated as a bulk pack. Therefore, filling from the tanker to the individual cylinders of specified capacity for the purpose of retail sale cannot be treated as repacking from bulk packs to retail packs. 6.4 For the purpose of attracting Chapter Note 10, we also hold that merely l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are as follows "For example, when the mixture of argon and nitrogen is used in the manufacture of electric lamp, the argon gas performs the function of making the illumination. The Nitrogen gas gives long life to the filament of the bulb. Similarly, when the mixture of argon and carbon dioxide is used in welding, the argon gas creates an inert atmosphere while the carbon dioxide gas stops oxidization of the material. Thus the individual gases retained their individual properties even when filled in the same cylinder. With the advent of modern techniques and the facility of filling two or more gases in one cylinder, the customers found them more economical to handle the gases and it saved labour. Further, it was not necessary for the custo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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