Customer-supplied packing costs excluded from assessable value in hydrogen gas excise valuation dispute.

Cost of customer-supplied gas cylinders used as packing was not includible in the assessable value of hydrogen gas for central excise duty. The Tribunal followed earlier rulings that packing supplied free by the customer does not form part of assessable value and relied on Supreme Court authority holding that rental charges for delayed retention of cylinders could not be added to value. Finding no contrary authority to displace that position, it concluded that the cylinders' cost was excluded from valuation and the appeals were allowed.

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Issues: Whether the cost of gas cylinders supplied by customers could be included in the assessable value of hydrogen gas for central excise duty.

Analysis: The cylinders belonged to the customers and were supplied as packing. The Tribunal followed earlier decisions holding that the cost of packing supplied free by the customer is not includible in the assessable value of the goods contained therein. It also relied on the Supreme Court ruling that rental charges for delayed retention of cylinders could not be added to assessable value, and found no contrary authority displacing that position.

Conclusion: The cost of the cylinders was not includible in the assessable value of the hydrogen gas, and the appeals were to be allowed.

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