2003 (7) TMI 604 - AT - Central Excise

Summary

Issues:
1. Inclusion of rental charges for metal containers in the assessable value of chlorine.
2. Application for waiver of pre-deposit of duty demand and penalty.

Analysis:
1. The primary issue in this case revolves around whether the rental charges for metal containers used for transporting chlorine should be included in the assessable value of the product. The appellants argue that the rental charge is separate from the price of chlorine and is merely a fee for using the tonners. They rely on the decision of the Apex Court in the case of CCE v. Indian Oxygen Ltd. and a clarification issued by the Central Board of Excise and Customs. On the other hand, the respondent points to a clarification issued by the Board in 2000, which states that rental charges for reusable metal containers should be added to the transaction value. The Tribunal notes that the Supreme Court's decision in the Indian Oxygen case is applicable under the new section as well. The court had previously ruled that charges for cylinders, ancillary to the sale of goods, are rental charges and should not be included in the price of the goods. The Tribunal concludes that the rental charge for tonners is akin to the situation with oxygen cylinders and should not be considered part of the price of chlorine, as there were two separate transactions - one for the sale of chlorine and another for renting the tonner.

2. Additionally, the appellants have requested a waiver of the pre-deposit of duty demand and penalty. The Tribunal grants the waivers requested and emphasizes the importance of expediting the appeal process due to the relevance of the valuation issue in question for various products. The appeal is scheduled for a priority hearing on a specified date to ensure a prompt resolution of the matter.