2007 (7) TMI 199 - AT - Central Excise

Assessee cleared the liquid Sulphur dioxide in cylinders supplied by buyers on payment of duty on the basis of transaction value - department wanted the amortized value of cylinders to be included in the assessable value - buyers were not alleged to be related to the assessee & price charged by the latter was not alleged to be affected by any extra commercial consideration - so value of the cylinders owned by the buyers was not includible in the assessable value of liquid Sulphur dioxide

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal of manufacturers of liquid Sulphur dioxide, setting aside the demand for differential duty and penalty. The Tribunal ruled that the value of cylinders supplied by buyers should not be included in the assessable value of the goods, citing a similar precedent.