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TMI Blog2007 (12) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... d are engaged in the manufacture and clearance of excisable goods namely "Industrial Gases and Medical grade Oxygen" Revenue proceeded against them on the ground that they had not included the rentals collected by them on the gas cylinders supplied to the customers on appropriate payment of duty. Adjudication proceedings were initiated and the lower authority relying on various judicial decisions dropped the demand of Rs.38, 81,732/-. However, Revenue appealed to the Commissioner (A) and the commissioner (A) passed the impugned order allowing the appeal of the Revenue against the Order-in-Original passed by the Additional Commissioner of Central Excise, Bangalore-I Commissionerate. The appellants are highly aggrieved over the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be added to the assessable value as they have nothing to do with the manufacture 4. Hindustan Gas & Industries Ltd. 1989 (41) E.L.T. 663 This case was affirmed by the S.C in 1995.(78) E.L.T. A216. The Tribunal came to the conclusion that the deduction for the phased cost of cylinders from the assessable value is permitted 5. A. Infrastructure Ltd., 2001 (134) E.L.T. A163 In this case the Supreme court agreed with the Tribunal that rental charges towards cylinder hired by the manufacturers from other parties and cylinders owned by the manufacturer deductible from the assessable value 6. BOC India Ltd., 2004 (175) E.L.T. 236 It is held that cylinder holding charges not includible in the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity. Judicial discipline requires that the lower authorities follow the decisions of the Tribunal if the same has not been changed. It is made abundantly clear by the case laws cited by the learned advocate and which have been given in the tabular column supra. We find that the reason given by the Commissioner (A) for allowing the departmental appeal and disregarding the decision of the Tribunal is not correct and is not in the interest of judicial discipline. We also note that the Hon'ble Apex Court in the case of CCE v. Acer India Ltd. - 2007 (218) E.L.T. 17 (S.C.) (supra) which has been cited by the learned advocate, has made it clear that in Para 54 and 55 that transaction value under Section 4(3) (d) of Central Excise is subject to cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... too the explanation contained therein by way of definition of 'transaction value' can neither override the charging provision nor by reason thereof a 'goods' which is not excisable would become an excisable one only because one is fitted into the other, unless the context otherwise requires." 3.2 We hold that in the Indian Oxygen case, the Hon'ble Apex Court has clearly held why the rental charges are not includable. The logic of that decision will hold goods even after the amendment of Section 4 with effect from 1-7-2000. It should be borne in mind that excise is a levy on the manufacture and this holds goods even after 1-7-2000. The rental charges are entirely different and wha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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