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2011 (8) TMI 855 - AT - Central ExciseValuation - Goods Cleared through Depots - Held That - In view of CCE Nashik vs. VIP Industries (2011 -TMI - 211414 - CESTAT, Mumbai), equalized freight is required to be added in the transaction value for the period from 1.7.2000 onwards. Appeal of revenue allowed.
Issues:
Inclusion of equalised freight in the transaction value for the period May 2001 to June 2001 and July 2001 to March 2002. Analysis: The case involved two appeals filed by the Revenue against an Order-in-Appeal. The respondent, a manufacturer of plastic moulded luggage goods, was issued show-cause notices proposing the inclusion of freight charge recovered by them in the transaction value of the goods. The Asst. Commissioner confirmed the show-cause notices and imposed penalties and interest. However, the respondent appealed before the Commissioner (Appeals) who allowed the appeal, setting aside the Order in Original. The Revenue then appealed against this decision before the Tribunal. The issue in question was whether equalised freight should be included in the transaction value for the specified period. The Revenue argued that the matter had already been settled by a previous Tribunal order in the case of CCE Nashik vs. VIP Industries. The Tribunal in that case held that no exclusion of equalised freight is permissible from 1.7.2000 onwards, and duty is liable to be paid on the value inclusive of the cost of transaction from factory to depot. The Revenue requested the Tribunal to set aside the Order-in-Appeal and restore the Order in Original. Despite the respondent not appearing during the proceedings, the Tribunal examined the case papers and found that the issue was squarely covered by the previous Tribunal order in the case of CCE vs. VIP Industries. The Tribunal noted that the equalised freight is required to be added in the transaction value for the period from 1.7.2000 onwards. As the show-cause notice in this case was issued for the period 2001, the duty was deemed to be required to be paid on the value inclusive of the equalised freight. Consequently, the Tribunal set aside the Order-in-Appeal and restored the Order in Original, thereby allowing the appeals filed by the Revenue.
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