1985 (7) TMI 350

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.... and Acetylene Co. Pvt. LTD., Gwalior manufacture oxygen and acetylene gas falling under T.I. 14H of CET. The gas is supplied by them to their customers in durable cylinders. The Assistant Collector of Central Excise, Gwalior had demanded duty on the retention/holding charges of gas cylinders which was being collected by the Respondents from their customers. The total duty amount was Rs. 1,256.72 for the period 1-10-1980 to 31-3-1981. Aggrieved by this, the Respondents preferred an appeal before the Collector of Central Excise (Appeals) who in his order dated 19-10-1984 observed that the oxygen gas was supplied by the Respondents in durable and returnable containers and held that if the Respondents were charging only for the retention/holdi....

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....as also produced. A perusal of the contract entered into with M/s. Cimmco Steel Foundary, Gwalior shows that the following charges are included :- (a) Rate ... Rs. 38 per. cylinder. (b) Security ... Rs. 300 per cylinder. (c) Mode of payment. (d) Rent of 0.50 P. per day per cylinder for the free period and Re. 1/- per day for subsequent period. (e) In case of loss of cylinder, Rs. 2,000/- per cylinder. In the case of M/s. Cimmco Steel Foundary, the free period seems to be 10 days while in the case of M/s. Hind Lamps, Shikohabad, it is given as 15 days. 5. We have given careful consideration to the submissions made on behalf of the Appellant and the Respondents. The issue is whether the rental or ....