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2004 (10) TMI 169 - AT - Central Excise
Issues:
Whether consideration received for providing linkage facility within factory premises is includible in the assessable value of Hydrogen Gas manufactured by M/s. Punjab Alkalies and Chemicals Ltd. Analysis: The appeal before the Appellate Tribunal CESTAT, New Delhi involved the question of whether the consideration received by M/s. Punjab Alkalies and Chemicals Ltd. for providing a linkage facility within their factory premises should be included in the assessable value of Hydrogen Gas manufactured by them. The appellant argued that the charges for the facility were separate from the manufacturing process and should not be included, while the Departmental Representative contended that such expenses up to the factory gate should be included in the assessable value as they are akin to transportation costs within the factory premises. Upon considering the arguments presented by both sides, the Tribunal found merit in the contention of the Departmental Representative. The Tribunal observed that the facility provided by the appellant involved bringing Hydrogen Gas from the tank to the factory gate for supply to customers, essentially constituting handling charges within the factory premises. Consequently, the Tribunal held that these expenses were indeed includible in the assessable value of the Hydrogen Gas. Therefore, the demand for duty was upheld by the Tribunal. However, the Tribunal noted that the penalty imposed on the appellant was excessive. In the interest of justice, the Tribunal decided to reduce the penalty from the original amount to Rs. 20,000. Accordingly, the Tribunal partially allowed the appeal, maintaining the inclusion of linkage facility charges in the assessable value while reducing the penalty amount imposed on the appellant.
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