K.L. Rekhi, Member (T)

1. We have heard both sides. The respondents manufactured liquid Chlorine. They supplied it to their customers in Tonners and Cylinders made of steel. The department accepts that these are durable and returnable containers and that their cost is not includible in the assessable value of Chlorine as per Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944. The dispute in this appeal of the department is on the deduction of Rs. 100/- in the case of Tonners (800 to 1,000 Kgs. capacity) and Rs. 150/- in the case of cylinders (20 to 100 Kgs. capacity) which the respondents claimed as cost of packing. It is stated in the appeal by the department that this cost of packing claimed by the respondents "was nothing but expenses said to have been incurred by them on account of maintenance of Cylinders/Tenners, service charges etc. which were recovered from the customers by them separately". The department pleads for dis-allowing the deduction of such maintenance and service charges for the containers only on one short ground -

The assessee was already enjoying deduction on the cost of packing under Section 4(4)(d)(i) on the cost of containers which are durabl