The activity of filling imported Hepta Propane/FM-200 gas from ...

Gas Refilling Not Manufacturing: Court Clarifies Duty Exemption for Imported Cylinders.

October 23, 2024

Case Laws Central Excise AT

The activity of filling imported Hepta Propane/FM-200 gas from bulk containers into smaller empty cylinders does not constitute a manufacturing process under Note 9 to Chapter 38 of the Central Excise Tariff Act, 1985. The refilling process involves transferring the gas under high pressure using nitrogen gas, without any perceptible change or treatment to render the product marketable. The imported gas and nitrogen gas remain unaltered after refilling into the cylinders. The Circular No. 342/58/97-CX clarifies that simply transferring material from one container to another does not qualify as "packing" to be considered manufacturing. The Tribunal's decision aligns with previous rulings, including M/s 3M India Ltd. and Commissioner of Central Excise, Vadodara v. M/s Vadilal Gases Ltd., which held that mixing gases without chemical reactions or creating new products does not amount to manufacturing under the relevant chapter note. Consequently, the appellants' activity does not attract central excise duty, and the impugned order imposing duty and penalty cannot be sustained.

View Source

← Previous Next →

The activity of filling imported Hepta Propane/FM-200 gas from ...

Gas Refilling Not Manufacturing: Court Clarifies Duty Exemption for Imported Cylinders.

October 23, 2024

Case Laws Central Excise AT

You may also like:

CENVAT Credit - capital goods - movement (transport) of Hydrogen Gas Cylinder outside factory premises for refilling etc. - credit cannot be denied on temporary taking...

Bottling of gas into gas cylinders, which requires a very specialized process and an independent plant and machinery, amount to production of ‘gas cylinders’ - deduction...

Depreciation on the 1250 gas cylinders - leasing out of gas cylinders - assessee has proved ownership of these gas cylinders and use of these gas cylinders for business...

Sale of gas cylinders to be included in the turnover or not - business of supply of gas cylinders to the consumers - sale of gas cylinders was liable to be included on...

Depreciation - Whether the chlorine toners used by the assessee were gas cylinders – Gas cylinders including valves and regulators were entitled to depreciation at the...

Security for gas cylinders received - the security for gas cylinders received by the assessee could not be treated as trading receipt. - HC

Mega Power Project - Exemption under Notification no. 21/2002 - Project Import - Import of ‘gas turbine components’ and ‘generator transformers’ - Benefit of exemption denied - AT

Retrospective exemption granted from payment of any customs duty on import of "Rough diamonds (industrial or non-industrial)" for the period 1.7.2017 to 1.2.2022....

Once the income from leasing those gas cylinders is accepted as the "business income", which is taxed at the hands of the assessee as such, we see no reason how the...

Whether the security deposits collected from customers on letting out the Gas Cylinders is trading receipt, whether these Gas cylinders would constitute as plant as per...

Manufacture - refilling of Hydrogen gas cylinder - filling process - the activity undertaken by the appellant does not amount manufacture and the appellant is not liable...

The appellants imported a helicopter (Model No.412-EP, Sr. No.36643 registered as VT-HGK) vide B/E No.397583 dated 26.12.2007. The exemption entry 347B of the N/N....

Area Based Exemption - The exemption cannot be restricted to products which are formed in the gaseous stage alone for the reason that the exemption refers to gas based...

Classification of import of Marine Gas Oil - what was imported was Marine Gas Oil and not Light Diesel Oil and hence the benefit of exemption under CN 21/2002,...

Levy of duty - manufacture of various gases such as Oxygen, Nitrogen, Argon etc. - gases which were vented out in the atmosphere are exempted from excise duty - duty not...

Quick Updates: