1988 (7) TMI 280 - AT - Central Excise

Summary

Issues:
- Assessable value determination based on ex-factory or ex-depot prices.
- Inclusion of additional charges like delivery, handling, cylinder deposit, rentals, and interest in the assessable value.

Assessable Value - Ex-factory vs. Ex-depot Prices:
The judgment involves seven appeals by the Collector of Central Excise, Guntur, and six appeals by M/s. Indian Oxygen Ltd. against Orders-in-Appeal from the Collector of Central Excise (Appeals), Madras. The main issue revolves around whether duty should be levied on goods based on ex-factory prices or ex-depot prices. M/s. Indian Oxygen Ltd. sells oxygen and D.A. Gases from their factory and depots at various locations. The department found discrepancies in the prices charged by the manufacturers at their depots compared to approved price lists. The manufacturers argued that the difference in prices was due to special delivery and collection charges. The Tribunal referenced previous cases like Usha Martin Industries and Indian Oil Corporation Ltd., emphasizing that the assessable value should be based on ex-factory prices when ascertainable, as it represents the normal price at the place of manufacture.

Inclusion of Additional Charges in Assessable Value:
Regarding additional charges like delivery, handling, cylinder deposit, rentals, and interest, the Tribunal held that charges related to delivery and handling ex-factory should be included in the assessable value as they contribute to the price of goods ex-factory. However, charges for cylinder rentals and interest on deposit receipts were deemed unrelated to the cost of manufacturing and thus should not be part of the assessable value. The judgment cited the case of Premier Oxygen and Acetylene Co. (P) Ltd., Gwalior, to support this position. The Tribunal concluded by directing the Assistant Collector to reevaluate the assessable value based on the principles outlined in the judgment.

This comprehensive analysis of the judgment delves into the key issues of assessable value determination and the inclusion of various additional charges, providing a detailed overview of the Tribunal's decision and the legal reasoning behind it.