TMI Blog2004 (1) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction of new Section with effect 1-7-2000, as the Cylinder Retention Charges are relatable to the sale of the Gas and therefore, the same are includible in the transaction-value. On the other hand, the appellants' contention is that the said issue is finally decided by the Hon'ble Supreme Court in their own case reported in 1988 (36) E.L.T. 730 and it was held that the appellants are engaged in the manufacture of clearance of sale of Gases and the charges recovered by the appellant company for the rent of the Cylinders, are ancillary and not an activity of manufacture. As such, it was held that the said charges are not includible. It has been argued before us that in any case, the cost of Cylinder is included in the cost of Gases on prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct from 1-7-2000, new provisions of Section 4 were introduced. The relevant portion of the said Section is reproduced below :- "4(3)(d) : 'transaction value' means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or any other time, including, but not limited to, any amount charged for, or to make provision for advertising or publicity, marketing selling organisation expenses, storage, outward handling, servicing, warranty commission or any other matter; but does not include the amount of duty of excise, sales t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntractual obligation. These Rental Charges are not being collected by the appellants from their customers as routine, irrespective of the return of the Cylinders. As such it can be safely concluded that the said charges are not, in any way, related to or connected with the sale of the Gases. As such, the same cannot be said to be included in the definition of the 'transaction value', as is appearing in the provisions of Section 4(3)(d). As such, we are of the view that even after the introduction of the new Section 4 with effect from 1-7-2000, the same would not form part of the assessable value of the final product i.e. Gases. Accordingly, we set aside the impugned order and allow the appeal with consequential relief to the appellants. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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