LPG valuation and pre-deposit waiver granted where ex-storage price was treated as the assessable value.

Valuation of LPG cleared from storage facilities turned on whether terminalling charges had to be added to the assessable value for pre-deposit purposes. The record showed that excise duty had been paid on the ex-storage price fixed by the Oil Coordination Committee for domestic use, and the CBEC supplementary instructions treated the ex-storage price fixed from time to time as the assessable value for petroleum products. On that basis, the appellant was found to have made out a strong prima facie case against immediate inclusion of terminalling charges, and waiver of pre-deposit was granted with recovery stayed pending the appeal.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit of duty, interest and penalties arising from inclusion of terminalling charges in the assessable value of LPG.

Analysis: The dispute concerned valuation of LPG cleared from storage facilities, where the ex-storage price was fixed by the Oil Coordination Committee for domestic use. The record indicated that excise duty had been discharged on that basis and that the CBEC supplementary instructions treated the ex-storage price fixed from time to time as the assessable value for petroleum products. In these circumstances, the appellant's plea that terminalling charges were not immediately liable to be added for the purpose of pre-deposit consideration was found to disclose a strong prima facie case.

Conclusion: The application for waiver of pre-deposit was allowed and recovery of the demanded amounts was stayed till disposal of the appeal.

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