2018 (7) TMI 250 - AT - Central Excise

Valuation - abatement of transportation cost including insurance charges from the assessable value - Section 4 (1)(a) of Central Excise Act, 1944 read with Rule 5 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 - Held that - The document produced before us as sample of invoices, needs verification before the same is acted upon as it has been held in the impugned order that on merit, the issue is held in favour of the appellant - appeal allowed by way of remand.

Summary

Issues:
1. Restoration of dismissed Appeals on the ground of non-prosecution.
2. Abatement of transportation cost including insurance charges from the assessable value for Central Excise duty payment.

Analysis:
1. The judgment addresses the restoration of Appeals that were dismissed earlier due to non-prosecution. The appellants filed applications seeking restoration, which were allowed after providing reasons for the dismissal and with the consent of both sides. The Appeals were restored for final disposal.
2. The main issue in the Appeals pertained to the abatement of transportation cost, including insurance charges, from the assessable value for Central Excise duty payment. The Appellant Company, a manufacturer of telecommunication equipment, deducted freight from the contract price to determine the assessable value, which included transit insurance for safe transport of goods.
3. The ld.C.A. for the appellants highlighted that the impugned order rejected the appeals based on the grounds that insurance of goods for delivery does not make the buyer's premises the place of removal and that the appellants failed to provide proof of actual transportation costs for abatement. The appellants submitted corroborative evidence in the form of invoices and consignment notes, which were not considered in the impugned order.
4. The ld.D.R. for the Revenue reiterated the grounds of the impugned order but acknowledged the need for elaborate verification of the sample invoices and consignment notes provided by the appellants. The Tribunal, after considering the contentions of both sides, set aside the impugned order and allowed the appeal by way of remand for further verification and consideration of evidence before the lower adjudicating authority.
5. The Tribunal emphasized providing the appellants with a reasonable opportunity to present all evidence before the lower adjudicating authority in accordance with the law. The decision was made in view of the favorable merit of the issue for the appellant, citing a precedent from the Hon'ble Apex Court in the case of Escorts JCB Ltd.

This comprehensive analysis of the judgment covers the issues of restoration of dismissed Appeals and the abatement of transportation costs for Central Excise duty payment, detailing the arguments presented by both sides and the Tribunal's decision for further verification and consideration of evidence.