2009 (11) TMI 711 - AT - Central Excise

Summary

Issues involved: Appeal involving duty amount and penalty set aside by Commissioner (Appeals).

Issue 1: Inclusion of freight and insurance in assessable value

The respondent supplied ACSR Conductors to UP Power Corporation Limited on FOR destination basis. The Original Authority included the value of freight and insurance in the assessable value, demanding duty and penalty. However, the Commissioner (Appeals) relied on the decision of the Hon'ble Supreme Court in Escorts JCB Ltd. v. CCE, Delhi-II and other decisions, allowing the appeal on merits and limitation grounds. The Department claimed that in a FOR destination supply, the sale is effected at the supplier's end, but the Tribunal disagreed, stating there is no legal basis for such a claim. The Commissioner rightly held that the freight from the factory gate to the buyer's premises, under a separate contract, should not be included in the assessable value. The Tribunal found no valid grounds to interfere with this finding, agreeing with the Commissioner's decision and rejecting the Department's appeal.

(Order dictated and pronounced in the open Court)