TMI Blog1988 (8) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ute part of the assessable value. The order of the Tribunal needs no interference. The appeals, accordingly, fail and are dismissed. - Civil Appeal No. 2349-2361 of 1988 - - - Dated:- 2-8-1988 - Sabyasachi Mukharji and L.M. Sharma JJ. A.K. Ganguli, Senior Advocate (Mrs. Indu Malhotra and Mrs. Sushma Suri, Advocates, with him), for the appellant. Soli J. Sorabji, Senior Advocate (M. Chandrasekharan, Mrs. V.J. Francis and N.M. Popli, Advocates, with him), for the respondents. [Judgment per : Sabyasachi Mukharji, J.]. - These appeals are under Section 35L(b) of the Central Excises Salt Act, 1944 (hereinafter called 'the Act') directed against the decision of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated that the deposits from buyers were only to ensure return of the gas cylinders from the customers. 3. The Asstt. Collector Central Excise, Visakhapatnam, by an order dated 3.6.1965 held that the respondent had to pay excise duty on the interest earned @ 18% during the relevant period. He further held that since the respondent had suppressed this fact from the revenue, in the past 5 years, under Rule 8 read with Section 11 A of the Act, these are includible. He also included the rentals of these cylinders in the value. On an appeal, the Collector of Central Excise. Madras, upheld the said order with certain modifications. 4. Dissatisfied with the aforesaid, the respondents appealed to the CEGAT. In its order under appeal, the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.C.) = (1986 Supp SCC 751). In the light of the aforesaid principles it has to be borne in mind that the supply of gas cylinders is ancillary to the supply of gases but it is strictly not incidental thereto because there are classes of persons who can take delivery of these gases without supply of cylinders by the respondent and in those cases no question of charging rental nor interest- on those deposits for cylinders, would arise. It is true that the gas being a commodity of peculiar nature, had to be delivered in cylinders but these cylinders might be supplied either by the supplier as an ancillary activity or brought by the consumer or purchasers at their own risk and cost. For purchasers taking it in their own cylinders supplied by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods in relation to each such class of buyers;" There may be different classes of buyers for different classes of goods. Section 4(1)(a) of the Act emphasises that if the goods is of the same type, the prices should have be the same. The proviso to the said Section postulates that where in accordance with normal practice such goods, namely, the gases are sold to different classes of buyers then different ones may be charged. If gases had been sold to different classes of buyers at different rates, It is possible that there might be different markets for the same. But here the charges like rentals for the cylinders and the notional interest income, are for ancillary or allied services and that is not an activity of manufacture. Henc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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