2000 (8) TMI 316 - AT - Central Excise

Summary

Issues involved: Dispute regarding deduction of "cylinder maintenance charges" and "fixed rental charges" while fixing assessable value of gases u/s central excise duty.

Summary:

Merits Challenge:
- Appellants claimed deductions for cylinder charges based on settled law and reliance on Supreme Court decision and Tribunal order.
- Department argued that no basis existed for deductions as price was same for gas sold in different cylinders.
- Department contended that appellants' collections were excessive and not related to actual costs.

Time-bar Challenge:
- Appellants argued that deductions were indicated in invoices, no suppression of facts.
- Department claimed appellants' collections were not disclosed, justifying extended period for duty recovery.

Decision:
- Tribunal found appellants' collections unrelated to costs, no basis for deductions.
- Assessable value should be ex-factory price, no need for deductions from sales to buyers with own cylinders.
- Appellants' conduct indicated intentional evasion of duty, justifying extended recovery period.
- Penalty under Section 11AC not applicable for duty evasion before 28-9-1996.
- Duty demand and penalty under Rule 173Q confirmed, penalty under Section 11AC set aside.
- Impugned order confirmed with modification in penalty.

This summary provides a detailed overview of the issues involved, challenges raised, arguments presented, and the final decision rendered by the Tribunal in the legal judgment.