COLLECTOR OF CENTRAL EXCISE, MADRAS versus INDIAN OXYGEN LTD.

COLLECTOR OF CENTRAL EXCISE, MADRAS versus INDIAN OXYGEN LTD.

Rental charges for cylinders and notional interest on deposits for their safe return do not relate to the cost of manufacture of the gases and thus are not includible in the assessable value under Section 4 of the Central Excises and Salt Act, 1944.

Parties
Appellant: Collector of Central Excise, Madras; Respondent: Indian Oxygen Ltd.
Jurisdiction
India
Judgment Date
02 August 1988
Procedural Posture
Civil Appeal / Supreme Court Final Decision
Outcome
Appeal dismissed
Legal Topics
Central Excise Valuation, Assessable Value, Rental Charges, Interest on Deposits, Ancillary Services, Section 4 of Central Excises and Salt Act
Tax Law Central Excise Valuation Assessable Value Rental Charges Interest on Deposits Ancillary Services Section 4 of Central Excises and Salt Act

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Parties

Collector of Central Excise, Madras

Appellant

Indian Oxygen Ltd.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Decision

Legal Issues

  1. 1 Whether rental charges for cylinders and notional interest on deposits taken from customers are includible in assessable value under Section 4 of the Central Excises and Salt Act, 1944.

Ratio Decidendi

Rental charges for cylinders and notional interest on deposits for their safe return do not relate to the cost of manufacture of the gases and thus are not includible in the assessable value under Section 4 of the Central Excises and Salt Act, 1944.

Court Disposition

Appeal dismissed

Orders

  • Order of the Tribunal affirmed; rental and interest not to be included in assessable value.