1990 (11) TMI 275

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....ined oils, soaps and industrial gases, namely, oxygen gas and dissolved acetylene gas. Oxygen gas is manufactured while manufacturing hydrogen gas for the purpose of hydrogenation of vegetable products. From 7th May, 1979, the appellants started selling oxygen gas in metal cylinders purchased from Bharat Pumps & Compressors Limited at the price of Rs. 1610.00. On 1st May, 1979, the appellants filed a price list with the Excise Department showing Rs. 2.30 per cubic metre as the cost of returnable packing i.e. metal cylinders on the basis of life span of the oxygen cylinders being trips on an average. The capacity of each cylinder is 7 cubic metres and therefore, the appellants recover Rs. 16.10 per cylinder that is Rs. 2.30 per cubic metre o....

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....s appeal arises out of the order of the Assistant Collector dated 1-9-1984 (approving the appellants price list effective from 22-10-1983 adding Rs. 12 per cubic metre in normal price for dissolved acetylene gas) which was upheld by Collector (Appeals) by order 31-10-1988. 6. E/1243/87-A. - In this case, a show cause notice dated 28-9-1984 was issued demanding Rs. 85,292.86 for the period from 1-5-1984 to 31-8-1984 in respect of cost of packing of oxygen gas and dissolved acetylene gas. The Assistant Collector confirmed the demand by order dated 18-3-1985. The Collector (Appeals) dismissed the appeal for non-compliance with the provisions of Section 35F of the CESA, 1944 holding that the appellants had not deposited the duty amount. 7....

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....dated 7-12-1983 is barred for the period prior to 6-6-1983. 10. On merits the issue to be decided is the inclusion of the cost of cylinders utilised for packing oxygen gas and dissolved acetylene gas. The cylinders are durable and returnable in nature and therefore, in accordance with the provisions of Section 4(4)(d)(i) of the CESA, 1944, the cost of such cylinders cannot be included in the asessable value of such gases as held by the Hon'ble Supreme Court in the case of Collector of Central Excise v. Indian Oxygen Limited [1988 (36) E.L.T. 730]. In the case of Collector of Central Excise v. Hindustan Gas & Industries Limited [1989 (41) E.L.T. 663], this Tribunal has accepted the principle that cost of cylinders of durable and returnabl....