1988 (5) TMI 115 - AT - Central Excise

Summary

Issues Involved:
1. Suppression of facts and extended period of limitation.
2. Inclusion of handling charges, loading and unloading charges, and cylinder detention charges in the assessable value.

Summary:

1. Suppression of Facts and Extended Period of Limitation:
The Tribunal held that the appellants did not declare handling charges, loading and unloading charges, and cylinder detention charges in the price lists filed u/r 173C of the Central Excise Rules, 1944. The appellants issued separate invoices for these charges, which were not disclosed to the Central Excise authorities. The Tribunal concluded that there was suppression of facts on the part of the appellants, justifying the application of the extended period of limitation u/s 11A(1) of the Central Excises and Salt Act, 1944. Consequently, the penalty was justified but reduced to Rs. 50,000.

2. Inclusion of Handling Charges, Loading and Unloading Charges, and Cylinder Detention Charges in Assessable Value:
- Cylinder Detention Charges: The Tribunal referenced the case of Collector of Central Excise, Indore v. M/s. Premier Oxygen and Acetylene Co. Pvt. Ltd., Gwalior, holding that cylinder detention charges are not includible in the assessable value as they are post-manufacture charges.
- Handling Charges: Handling charges incurred at duty-paid depots are not includible in the assessable value, following the Supreme Court's judgment in Assistant Collector of Central Excise v. Madras Rubber Factory. However, handling charges incurred up to the factory gate stage are includible.
- Loading and Unloading Charges: Loading charges incurred at the factory before clearance are includible in the assessable value, as per the Supreme Court's judgments in Union of India v. Bombay Tyre International Ltd. and Assistant Collector of Central Excise v. Madras Rubber Factory Ltd. Unloading charges incurred outside the factory gate after clearance are not includible.

The Tribunal remanded the matter to the Collector of Central Excise, Baroda, for re-adjudication, directing the exclusion of cylinder detention charges, unloading charges, and handling charges incurred at depots from the assessable value. It also directed the inclusion of handling and loading charges incurred up to the factory gate stage and any excess recoveries from customers as part of the price realization. The appeal was partly allowed.