Amount received as charges for providing containers for carrying sold gasses, could be chargeable for Excise Duty: Views of two co- ordinate benches appears contrary, matter referred to the larger bench
Civil Appeal No. 3159 of 2004
Bench: Justice Ranjan Gogoi; Justice Arun Misra; Justice Prafulla C. Pant
Case Brief: In the facts of the case, the respondents herein are the assessees manufacturing the dissolved and compressed industrial gases and also allied products. Some of the container items are provided by the assessees and in some cases the customers bring their won container items or cylinders for gases supplies. And for providing such containers, the assessees charging the customer certain amounts under the different heads and such amounts are not reflected in the sale invoices for the purpose of computation of assessable value. Moreover, the respondents/ assessees also found treating such amounts as the income from ancillary or allied ventures. As such the present appeals are involving the main issue that whether the said charges are liable to be taken into account for determination of value for the purpose of levy of duty in terms of the provisions under section 4 of the Central Excise Act, 1944 as amended with effect from the First day of July, 2000. The bench found after analysing the various decisions of the apex court and also the provisions relevant herein, that though in the backdrop of different factual scenarios, two Co- ordinate Benches of three- judges have taken what would appear to be contrary views with regard to purport and effect and the interconnection between Section 3 and 4 of the said Act. thus, the bench found that not another co- ordinate bench should venture into the issues raised and even such bench should not express any opinion on the merits of either of the views expressed in the cases Union of India and Ors. Vs. Bombay Tyre International Ltd. and Ors. (1984) 1 SCC467 and Commissioner of Central Excise Vs. Acer Ltd. (2004) 8 SCC 173. Thus, the bench decided to refer the question arose in the matter before the Larger Bench of the Court, for their consideration and for which the papers of the case were directed to be placed before the Honourable Chief Justice of India for further directions.
Read the Judgement: Commnr. Of Central Excise, Indore Vs. M/S. Grasim Industries Ltd