2009 (9) TMI 832

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.... Chand, SDR, for the Respondent. ORDER Revenue has come in appeal being aggrieved by the order passed by the learned Commissioner (Appeals), Allahabad. That authority had examined the issue as to whether the Hydraulic testing, repair and maintenance charges of cylinders and rental charges of Chlorine tankers received from parties shall form part of the assessable value. He held that rental c....

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.... the Board circular No. 643/34/2002-CX dated 1-7-2002. So far as the testing, repair and maintenance charges are concerned, he says that this is essential activity before delivery of the finished goods i.e. chlorine and that aspect was not considered by the learned Commissioner (Appeals). Learned DR specifically invites our attention to the decision of the Tribunal in the case of Kota Oxygen (P) L....

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....cylinders of various customers, but they also provide such service to others. For that purpose, they have opted for registration under the Finance Act, 1994 and paying service tax on the consideration received for the purpose. He placed reliance on the decision in the case of Inox Air Products Ltd. v. CCE, Bangalore reported in 2008 (232) E.L.T. 338 (Tri. Bang.) and submits that rental charges rec....

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.... circumstances clearly demonstrate that testing, repair and maintenance is not a regular activity carried out prior to clearance. Once such peculiar fact surfaces, testing repair and maintenance charges shall not form part of assessable value of the chlorine cleared through cylinders. 7. So far as rent of the cylinders in respect of the period beyond the free period is concerned, there is nothi....