9911796707
TMI Blog2000 (11) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the period 9-5-1993 to 1-9-1993. The price of the cylinder was finally approved @ Rs. 547.00. Consequently they filed a refund claim amounting to Rs. 93,307.77 on 29-10-93 with the Asstt. Commissioner, Central Excise Division IV, Noida. The Asstt. Commissioner vide his order dated 28-7-98 rejected the refund claim of the appellants. The Asstt. Commissioner in his order observed that during this period, 1,130 Nos. cylinders were sold to M/s. Media Transasia (India) Pvt. Ltd. As per the terms and conditions of the agreement between the two parties, the cylinders sold were the property of M/s. Media Transasia (India) Pvt. Ltd. but the same were leased to the appellants and they were to pay rent on the agreed amount. He has observed that on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the appellants and Shri P.K. Jain, SDR for the respondent. Ld. Consultant for the appellants submitted that these cylinders were never meant for sale but were for their own use. They needed financial liquidity for which they entered into a financial arrangement under which the sale of cylinders was made on paper only to the Finance Company. The cylinders sold were instantly and simultaneously taken back on lease. The actual physical possession of the cylinders never passed on from the appellants - the seller-lessee to the financer-lesser. He contended that the true and correct character of the subject financial transactions are properly reflected in the certificate of the Chartered Accountant in terms of which the actual assessable value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. The appellants would like to argue that since the actual possession of the cylinders never passed on from them to M/s. Media, such type of transactions are not the normal sale and purchase dealings and therefore in this case the element of excise duty is not passed on to the buyer. We are not impressed with this argument. Notwithstanding the fact that the cylinders never left the factory premises of the appellants, their money value including the excise duty element was received by the appellants from the M/s. Media. It is evident from the invoice dated 21-5-93 issued by the appellants to M/s. Media relevant contents of which are extracted below : Sl. No. Particulars : Qty : Rate : Amount : 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tured by the appellants were given to the user/customer on hire purchase basis. The hire purchase activity was being financed through the intervention of the leasing companies. The question arose as to what would be the assessable value of the machines sold under this arrangement. In this type of arrangement it is observed in this decision, the price shown in the invoice issued by the appellants to the leasing company is only of an academic interest. This price is immaterial as no payment is made to the leasing company against the invoice nor is the machine delivered physically to the leasing company. It is therefore observed that the invoice prices of the appellants to the leasing companies did not truly meet the requirements of normal pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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