1986 (1) TMI 307

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....Lakshmikumaran, Advocate, for the Respondents. [Order per : K.L. Rekhi, Member (T)].  - Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944 allows exclusion of cost of packing from the assessable value of goods if the packing is of a durable nature and is returnable by the buyer to the assessee. The respondents manufactured compressed oxygen gas and cleared it packed in cylinde....

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.... to the Superintendent Central Excise :- "In this regard we beg to state that :- Cylinder maintenance charges not only includes maintenance charges of the cylinders but also includes cost of the cylinders itself which have been calculated in terms of per M3 as per details given below :- 1. Approximate cost of 1 cylinder ... Rs. 1600/- 2. Approximate life of 1 cylinder . 12 years ....

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....rs. 3. We have heard both sides and have given the matter our earnest consideration. We find force in the respondents' submission that by the above method they were only trying to recover the total cost of the cylinder in instalments spread over the life span of the cylinder. It was only a single recovery and not a double recovery over and above the initial purchase price of the cylinder. The r....