2009 (5) TMI 681 - AT - Central Excise

Summary

Issues involved: Interpretation of assessable value regarding cylinder handling charges, rental charges, loading and unloading charges of cylinders containing liquid oxygen and liquid argon.

Summary:
The Appellate Tribunal CESTAT, CHENNAI addressed the appeal where the revenue challenged the order of the Commissioner of Central Excise (Appeals) regarding the inclusion of cylinder handling charges, rental charges, loading and unloading charges of cylinders containing liquid oxygen and liquid argon in the assessable value of goods.

The Tribunal referred to previous cases to establish that certain activities, such as filling of hydrogen gas and liquid ammonia into cylinders, do not amount to manufacture. Citing the case law, it was determined that since the activity in question did not amount to manufacture, the issue of valuation became irrelevant. Consequently, the impugned order setting aside the duty demand and penalty was upheld, and the appeal was rejected.

Additionally, the cross objection filed by the assessees, asserting that their activity does not amount to manufacture, was allowed based on the Tribunal's findings in the revenue's appeal. The decision was dictated and pronounced in open court.