2018 (10) TMI 2005 - AT - Central Excise

Valuation of goods (final products) - inclusion of value of empty gas cylinders, supplied free of cost by the customers for filling Sulphur Dioxide (NRG) in the assessable value or not - HELD THAT - Reliance placed a decision passed in their own case by this Tribunal in M/S TRANSPEK INDUSTRY LTD. VERSUS CCE VADODARA 2012 (9) TMI 855 - CESTAT AHMEDABAD , wherein the similar issue has been decided in favour of the appellant and accepted by the Revenue. Demand set aside - appeal allowed.

Summary

Issues Involved:
Whether the value of empty gas cylinders, supplied free of cost by customers for filling Sulphur Dioxide (NRG), is includable in the value of the final product or not.

Analysis:

The judgment by the Appellate Tribunal CESTAT AHMEDABAD revolved around the inclusion of the value of empty gas cylinders in the assessable value of the final product. The appellant, represented by Shri Saurabh Dixit, relied on a previous decision by the Tribunal in their favor. The Tribunal referred to a similar case involving liquid Sulphur dioxide and other chemicals where the issue of including the value of packaging material in the assessable value was discussed. The Tribunal cited a case involving liquid chlorine sold in tonners supplied by buyers, where it was held that no amount attributable to the value of the tonners was to be included in the assessable value of the goods. The Tribunal found no factual difference in the current case and concluded that the value of the cylinders owned by the buyers was not includible in the assessable value of liquid Sulphur dioxide. Therefore, the impugned order was set aside, and the appeal was allowed based on the precedent set by previous decisions.

In light of the precedent and the established legal principles, the Tribunal found in favor of the appellant, ruling that the value of the empty gas cylinders supplied by customers for filling Sulphur Dioxide was not includable in the value of the final product. The Tribunal's decision was based on the interpretation of relevant laws and previous judgments, emphasizing that the buyers were not affected by any extra-commercial consideration, and hence, the value of the cylinders was not to be included in the assessable value of the product. Consequently, the appeal was allowed, and the impugned order was set aside, providing clarity on the issue at hand.