1988 (8) TMI 98

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....b) of the Central Excises & Salt Act, 1944 (hereinafter called 'the Act') directed against the decision of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (hereinafter called the CEGAT). 2. The respondent M/s. Indian Oxygen Ltd., Visakhapatnam, are manufacturers of dissolved acetylene gas and compressed oxygen gas (hereinafter called "the gases"). The respondent was supplying these gases in cylinders at their factory gate. For taking delivery of these gases, some consumers/customers used to being their own cylinders and take the delivery, while others used to have the delivery in the cylinders supplied by the respondent. For the purpose of such supply of cylinders, certain rentals were charged by the respondent and a....

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....ise. Madras, upheld the said order with certain modifications. 4. Dissatisfied with the aforesaid, the respondents appealed to the CEGAT. In its order under appeal, the Tribunal observed, inter alia, as follows : "As regards charge on account of rental for the cylinders and the interest which accrues on account of deposit receipts for the supply of gases 'n returnable cylinders, we are not persuaded that either of these charges is related to the cost of manufacture of the goods as such." The Tribunal, therefore, under Section 4 deleted from the value, rentals for the cylinders and interest which accrued on account of deposit receipts for the supply of gases. Hence, this appeal by the Collector. 5. It is well-settled that the lev....

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....ed either by the supplier as an ancillary activity or brought by the consumer or purchasers at their own risk and cost. For purchasers taking it in their own cylinders supplied by them, there was no charge for them. This is not an activity for the manufacture of gases. This is ancillary to it but not incidental. Any income either in the shape of interest on deposits, notional or real, may be earned on the deposit for the safe return of cylinders, or any rental would be though oncillary but would not be the price for the manufacture. These might be profits or gains, If any, of any ancillary or allied venture. If that is the true position, then on the principle under Section 4(1)(a) of the Act, the Tribunal was right in excluding these two am....