2009 (7) TMI 315 - AT - Central Excise

The Revenue is aggrieved by the order of the Commissioner of Central Excise (Appeals) holding that cylinder handling charges, rental charges, loading and unloading charges of cylinders containing liquid oxygen and liquid argon are not includible in the assessable value of the goods. - We find that in the assessee s own case the Tribunal has held that the activity of filling of hydrogen gas in cylinders does not amount to manufacture. In the case of Ammonia Supply Company v. CCE, New Delhi it has been held by the Tribunal that filling of liquid ammonia from tankers into smaller cylinders does not amount to manufacture in terms of Chapter Note 10 to Chapter 28 of the Central Excise Tariff Act, 1985. The assessees have relied upon the Tribunal s decision in Ammonia Supply Company v. CCE in their appeal before the Commissioner (Appeals). Since the activity of the assessee s has already been held not to amount to manufacture, the question of valuation loses relevance. On this basis, viz. that the activity of the assessees does not amount to manufacture, we uphold the impugned order which has set aside the duty demand and penalty, and reject the appeal.

Summary

The Appellate Tribunal CESTAT CHENNAI upheld the order of the Commissioner of Central Excise (Appeals) stating that certain handling charges for cylinders containing liquid oxygen and liquid argon are not part of assessable value. Previous tribunal decisions supported this ruling, concluding that the activity in question does not constitute manufacturing. Therefore, the appeal by the Revenue was rejected.