2023 (1) TMI 5 - AT - Central Excise

Valuation of gas - inclusion of retention charges of Cylinders wherein the final product viz gas supplied to the Customer beyond the stipulated period in the assessable value of the gas or not - HELD THAT - The same issue has been decided in the appellant s own case for their different factory vide AIMS INDUSTRIES LTD. VERSUS C.C.E. S.T. -DAMAN. 2019 (4) TMI 2091 - CESTAT AHMEDABAD . In the said decision various Judgments including the Supreme Court judgment in the case of COMMISSIONER OF CENTRAL EXCISE, INDORE VERSUS GRASIM INDUSTRIES LTD. 2009 (7) TMI 155 - SUPREME COURT was considered. It was held that retention/detention charges is not a part of the sale price. It is only charged when the customers retain/detain the cylinders beyond the period stipulated by the appellant. Accordingly, the retention/detention charges are not includable in the transaction value of the excisable goods namely gas sold, duly packed, in the gas cylinders. In view of the above decision of this Tribunal which is based on the Hon ble Supreme Court judgment in case of Grasim Industries Ltd the issue is no longer Res-Integra, therefore, the impugned order is not sustainable - appeal allowed.

Summary

Issues involved:
Whether retention charges of cylinders, where gas is supplied to the customer beyond the stipulated period, should be included in the assessable value of the gas.

Analysis:
The Appellate Tribunal CESTAT AHMEDABAD, comprising HON'BLE MR. RAMESH NAIR, MEMBER (JUDICIAL) and HON'BLE MR. RAJU, MEMBER (TECHNICAL), addressed the issue of whether retention charges of cylinders should be included in the assessable value of gas supplied beyond the stipulated period. The appellant's counsel cited a previous order in favor of the assessee in a similar case. The Revenue representative acknowledged the department's acceptance of the Tribunal's earlier order. The Tribunal examined the issue in light of previous judgments, including the Supreme Court's decision in Grasim Industries Ltd. The Tribunal concluded that retention charges are not part of the sale price and should not be included in the transaction value of the gas sold in cylinders. Relying on the precedent set by the Supreme Court, the Tribunal set aside the impugned order and allowed the appeal.

In summary, the Tribunal found that the issue was no longer Res-Integra based on the previous decisions and the Supreme Court's judgment in Grasim Industries Ltd. Therefore, the impugned order was deemed unsustainable, and the appeal was allowed.