9911796707
TMI Blog1988 (7) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... same order of Collector (Appeals), Madras they have been heard together and are being disposed of by this common order. 2. Heard Shri V.M. Doiphode, S.D.R., for the department and Shri S. Ramasubramaniam and Shri Krishna Srinivasan, Advocates for M/s. Indian Oxygen Ltd., Visakhapatnam. 3. M/s. Indian Oxygen Ltd., Visakhapatnam are the manufacturer of oxygen and D.A. Gases. They sell the said gases from their factory at Visakhapatnam and from their depot/service centres at Vijayawada, Rajamundry, Vadlapudi, Jeypore and Damanjodi. They sell their product to Government undertakings as per the rates determined by D.G.S. & D., New Delhi. In respect of other buyers they sell their product at various prices on slab basis. This slab basis is rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nam to Vijayawada. 7. M/s. Indian Oxygen Ltd. have for inexplicable reasons not come forward to offer concrete evidence of actual freight charges etc. They have taken the stand that since the ex-factory prices for the goods are available they are entitled to assessment in terms of those prices. It is submitted that the department is not within its jurisdiction to ignore the available ex-factory price and to assess the manufacture as per ex-depot prices. It is emphasized that it is nobody's case that ex-factory prices are not known since the very same contract furnishes the ex-factory prices. 8. The learned Advocate relies on the following case law :- (1) 1987 (27) E.L.T. 482 - Indian Oil Corporation Ltd. v. CCE, Calcutta. (2) 1987 (27) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fers to depots would be initially assessed on D.G.S.&D. rate contract price and subsequently the assessment would be revised if the actual sale prices happened to be higher. It was observed by this Bench in that matter that when 60% of the appellant's goods were sold in wholesale at the factory gate, the wholesale cash price/normal price was ascertainable at the time and place of removal itself; and, therefore, it was not lawful to assess the goods on the basis of subsequent actual sale price, ex-depots which was neither the price at the time of removal nor at the place of removal. Nothing that the rate contract price was applicable only to D.G.S.&D. and Government Departments, it was observed, that there were other sales also at the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up the price of the goods ex-factory. Such charges, therefore, will have to be added to the price declared by the manufacturer. 15. There are two other points. As regards charge on account of rental for the cylinders and the interest which accrues on account of deposit receipts for the supply of gases in returnable cylinders, we are not persuaded that either of these charges is related, to the cost of manufacture of the goods as such. In the case of Premier Oxygen and Acetylene Co. (P) Ltd., Gwalior (supra) this Bench has already held that rental charges for retention or holding of gas cylinders are not includible in assessable value. We fully endorse this view and we also hold that any interest accruing on deposits received for such gas c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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