Tribunal rules in favor of appellant on duty payable for LPG cylinders

The tribunal allowed the appeal in a case involving the correct assessable value and duty payable on LPG cylinders manufactured for Indian Oil Company. The appellant's omission of transportation charges was deemed bona fide as per the contract terms with IOC, leading to the show cause notice being considered time-barred. Consequently, the tribunal set aside the order-in-original, ruling in favor of the appellant.

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Issues involved: Appeal against Order-in-original regarding correct assessable value and duty payable on LPG cylinders manufactured on job work basis for Indian Oil Company (IOC) from November 1984 to October 1986.

Summary:
The appellant, engaged in manufacturing LPG cylinders, disputed the assessable value and duty payable on cylinders supplied to IOC. The appellant failed to include transportation charges from the Port to the factory in the price list, which was not disclosed by IOC. The appellant argued that the show cause notice was time-barred. The tribunal found that the omission of transportation charges was not wilful misstatement or suppression of facts. The appellant's omission was deemed bona fide as per the contract terms with IOC, where IOC was responsible for excise liability. Therefore, the proviso to Section 11A of the Central Excise Act, 1944 could not be invoked, and the show cause notice was considered barred by limitation. Consequently, the tribunal set aside the impugned order and allowed the appeal.

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