2007 (4) TMI 600 - AT - Central Excise

Summary

Issues involved: Assessable value of goods u/s Chapter 56 of Central Excise Tariff for the period 1998-99; Deduction of transportation charges from sale price; Imposition of personal penalty u/s Rule 209A of Central Excise Rules, 1944.

The appellant, engaged in manufacturing non-woven fabrics, cleared goods from factory gate to depot for sale during 1998-99, leading to a dispute over assessable value of the goods.

The appellant claimed deductions, including Rs. 0.20 per kg. as transport charges from depot to party's place, but lower authorities denied this deduction, considering it as freight expenses from factory gate to depot.

Upon review, it was found that the transport charges claimed were indeed for movement from depot to customer's premises, supported by declarations and transport bills. Lower authorities' decision to include these charges in assessable value and impose penalties was not substantiated with evidence.

The absence of evidence to counter the appellant's claim that the charges were for depot-to-customer transportation, not factory gate-to-depot, led to the conclusion that such charges should not be part of assessable value. Even if the Revenue's stance was accepted, equalized freight charges were not to be added post-amendment, as per a Supreme Court ruling. Therefore, the appellant was granted relief based on this legal point, and the impugned order was set aside with consequential relief.

(Separate Judgment by Judge: Archana Wadhwa, Member (J))

Citation: 2007 (4) TMI 600 - CESTAT, AHMEDABAD

Represented by: Shri J.C. Patel, Advocate (Appellant); Shri Samir Chitkara, SDR (Respondent)

Decision Date: 24-4-2007