ORDER
K.K. Usha, President (J)
1. Challenge in this appeal is against the order passed by the Commissioner (Appeals) dated 9.4.2003 at the instance of the assessee.
2. The issue arising for consideration is whether the cost of repairing and handling expenses has to be added to the assessable value of the goods cleared by the appellant namely, dissolved acetylene. Relying on the decision of the Supreme Court in the case of C.C.E., Bombay III vs. Century Spg. & Mfg. Co. Ltd. – 1997 (94) ELT 16 (SC) and Board’s Circular No. 7/89-CX.1 dated 7.7.1989, the appellant would contend that the repairing and handling expenses incurred by it relate to the maintenanee of the gas cylinders. Therefore, they are not liable to be added to the assessable value of the dissolved acetone manufactured and cleared by it.
3. Learned SDR on the other hand would contend that the value of the aeetone which covers the major portion of the so-called repairing and handling expenses is liable to be added to the asessable value since dissolved acetylene cannot be cleared by the appellant without acetone. In support of the above, reliance was placed on he decisions of the Tribunal in the case of Best Liquifiable Gases Ltd. vs. C.C.E., New Delhi 1997 (95) ELT 228 and C.C.E. vs. Rishi Gases (P) Limited – 1989 (42) ELT 423. In Best Liquifiable Gases Ltd., the Tribunal has held as follows:
“4. The connection between acetone and acetylene gas has been considered by the Tribunal in the decision in Collector of Central Excise vs. Rishi Gases Pvt. Ltd. [1989 (42) ELT 423 (Tribunal)]. The Tribunal referred to Kirk Othmars’ Encylopedia of Chemical Technology which stated that acetone is a solvent for acetylene and that a specified quantity of solvent is added to cylinders as it dissolves many times its own volume of acetylene and its purpose is to be increase the amount of acetylene that may be safely charged and shipped. It was also noticed that acetylene is highly explosive substance and cannot be marketed without acetone. It is thus clear that the excisable product manufactured and cleared by the appellant is acetylene gas dissolved in acetone and packed in metal containers. That being so, acetoning charges should be part of the assessable value.”
In the light of the ratio of the above mentioned decision, the contention put forwarded by the appellant is not liable to be accepted. Since out of the total cost of Rs 1,01863,61, acetone consumed comes to Rs 93,524.32 as per the statement submitted by the appellant, we find no reason to interfere with order impugned.
4. In the result, appeal fails and stands dismissed. It will be open to the appellant to claim modvat credit as per rule.