2010 (11) TMI 930 - AT - Central Excise

Summary

Issues involved: Appeal against demand of excise duty, interest, and penalty u/s 11AC of the Central Excise Act, 1944 for non-separate indication of freight amount in excise invoices.

Summary:
The case involved a manufacturer of LPG Cylinders supplying to oil companies based on purchase orders indicating payment of freight to be paid to the manufacturer. The adjudicating authority confirmed a demand of &8377; 2,18,879/- for the period 1-7-2000 to 28-2-2003 due to non-separate indication of freight in excise invoices, with recovery of interest and penalty. The Commissioner (Appeals) set aside the order, leading to the Department's appeal.

The Department contended the grounds of appeal, while the respondent's advocate supported the Commissioner (Appeals) order. The Tribunal noted that the supply was based on purchase orders clearly mentioning freight payment, collected separately through commercial bills. The Department's case lacked evidence that the freight collected exceeded actual costs. Reference to a previous case highlighted that the freight actually incurred was deductible. As the freight collected matched actual costs, the appeal by the Department was rejected.

Therefore, the Tribunal dismissed the Department's appeal, emphasizing the proper indication of freight costs in commercial bills and purchase orders as per the Commissioner (Appeals) decision.