2023 (8) TMI 653 - AT - Central Excise

Valuation of goods - cost of empty cylinder received from the customers free of cost and used for packing of Sulphur Dioxide Gas supplied to such customers is to be included in the assessable value of final product or not - section 4 of Central Excise Act, 1944 - HELD THAT - This issue is no longer res- integra particularly in the appellant s own case as this Tribunal has decided the issue in their favour vide M/S. TRANSPEK INDUSTRY LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE ST, VADODARA 2018 (10) TMI 2005 - CESTAT AHMEDABAD wherein herein the similar issue has been decided in favour of the appellant and accepted by the Revenue. Thus, following this Tribunal order in the appellant s case for the different period, the Commissioner (Appeals) vide Order-In-Appeal No. SRP/502/VDR-I/2003 dated 27.02.2013 allowed their appeal by setting aside the OIO in that case. The present issue is also covered by the decision cited - demand set aside - appeal allowed.

Summary

Issues involved: Whether the cost of empty cylinder received from customers and used for packing Sulphur Dioxide Gas should be included in the assessable value of the final product under section 4 of Central Excise Act, 1944.

Summary:

Issue 1: Inclusion of cost of empty cylinders in assessable value

The appellant argued that a similar issue had been decided in their favor in a previous case by the Tribunal. They cited precedents such as SRF Ltd, Innovative Tech Pack Ltd, and L & T Ltd to support their case. The first appellate authority had also ruled in favor of the appellant in a previous decision. The Revenue, represented by the Assistant Commissioner, maintained the findings of the impugned order.

The Tribunal examined the submissions and records and concluded that the issue was no longer res integra, especially in the appellant's own case. Referring to a previous Final Order, the Tribunal reiterated that the value of empty gas cylinders supplied by customers for filling Sulphur Dioxide was not includable in the value of the final product. The Tribunal cited earlier decisions and held that the issue was squarely covered in favor of the assessee. Consequently, the impugned order was set aside, and the appeal was allowed.

In light of the Tribunal's decision and the Commissioner (Appeals) ruling in a previous case, the impugned order was deemed unsustainable and set aside, with the appeals being allowed.

*(Pronounced in the open court on 07.06.2023)*

This summary provides a detailed overview of the judgment, highlighting the arguments presented by both sides and the Tribunal's reasoning leading to the decision in favor of the appellant.