COLLECTOR OF CENTRAL EXCISE, MADRAS vs INDIAN OXYGEN LTD.

The Supreme Court held that under Section 4(1)(a) of the Central Excises and Salt Act, 1944, the rental charged for cylinders and the notional interest on deposits from customers are not part of the assessable value for excise duty. The Court found that these charges are related to ancillary services rather than the cost of manufacture. Consequently, the appeals by the Revenue were dismissed, affirming the Tribunal's decision to exclude these amounts from the assessable value.