POPULAR GASES Vs. COMMISSIONER OF C. EX., CALICUT

JUDGEMENT

(1.) THIS is an appeal filed against the Order -in -Appeal No. 180/2003, dated 13 -6 -2003 passed by the Commissioner of Customs and Central Excise (Appeals), Cochin.

(2.) THE brief facts of the case are as follows : - The appellants are manufacturers of Oxygen Gas, an excisable commodity. Apart from the invoices issued to their customers for supply of oxygen gas, they maintained an another set of invoice for collecting (i) transport charges for delivery of full cylinders and collection of empty cylinders; (ii) loading and unloading charges; and (iii) service charges. The Revenue proceeded against the appellants for inclusion of above elements in the assessable value and confirmed a demand of Rs. 2,77,430/ - under proviso to Section 11A(1) of the Central Excise Act, 1944. Equal penalty under Section 11AC was imposed. Interest under - Section 11AB was also imposed. The appellants approached the Commissioner (Appeals). The Commissioner (Appeals) reduced the demand to Rs. 1,18,343/ -. He imposed equal penalty under Section 11AC. He demanded interest under Section 11AB. Aggrieved over the decision of the Commissioner (Appeals), the appellant has come before the Tribunal for relief. 2. Shri Krishnan, Partner of the appellants company appeared on behalf of the appellant and Shri R. N. Viswanath, learned SDR appeared on behalf of the Revenue.

(3.) SHRI Krishnan submitted that the amounts collected for freight, service charges, etc. have absolutely no nexus with the manufacturing activity. They were collected for the different purposes. They are not includible in the assessable value in view of the various decisions of the Courts and the Tribunal. The following case laws were relied on: -