2007 (5) TMI 476 - AT - Central Excise

Valuation - Free Delivery Zone (FDZ) charges - includibility - Held that - In view of the fact that FDZ charges are separately shown along with the RPO charges the charges have been transparently collected and included in the invoice as per the direction of the OCC. Hence we are of opinion that the requirement at the material time under Rule 5 of the Central Excise (Valuation) Rules 2000 that transport charges should be separately shown has been met - we find no reason to uphold the impugned Order including FDZ charges in the assessable value - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT, Kolkata ruled in favor of the appellant regarding the inclusion of Free Delivery Zone (FDZ) charges in the assessable value of goods delivered to petrol pumps. The tribunal found that since the FDZ charges were transparently collected and separately shown in the invoice as per the direction of the Oil Coordination Committee (OCC), the requirement under Rule 5 of the Central Excise (Valuation) Rules, 2000 was met. The impugned order was set aside, and the appeal was allowed with consequential relief to the appellants. The Cross Objection filed by the Department was disposed of.