2019 (3) TMI 777 - AT - Central Excise

Valuation - inclusion of freight charges - return of empty vehicles after delivering the goods up to the buyers - CBEC Circular No. 643/34/2002-CX dt. 01.07.2002 - Held that - This Tribunal in the case of Haldia Petrochemicals Ltd vs. CCE, Haldia 2008 (12) TMI 47 - CESTAT KOLKATA which has been affirmed by the Hon ble Apex Court, the Revenue issued another Circular No. 923/13/2010-CX dt. 19.05.2010 wherein the Circular dt. 01.07.2002 was withdrawn and it has been clarified that cost of return fare of the empty vehicles is not required to be added in the assessable value of the goods supplied by the appellants. The demand against the appellants on account of inclusion of freight charges on the return fare of the empty vehicles is not sustainable - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against duty demanded on return of empty vehicles after delivering goods.

Analysis:
The appellant, a manufacturer of petroleum products, appealed against a duty demanded on the return of empty vehicles after delivering goods to buyers. The Revenue based its demand on a circular stating that transportation charges for return vehicles should be included in the assessable value. However, a previous Tribunal decision, affirmed by the Apex Court, and a subsequent Revenue circular clarified that the cost of return fare of empty vehicles should not be added to the assessable value of goods supplied. The Tribunal held that the demand against the appellant was not sustainable in light of the settled issue. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief.

This judgment addressed the issue of inclusion of freight charges on the return fare of empty vehicles in the assessable value of goods supplied by the appellant. The Tribunal relied on a previous decision affirmed by the Apex Court and a subsequent Revenue circular to conclude that such inclusion was not required. By setting aside the impugned order, the Tribunal provided relief to the appellant, highlighting the importance of legal precedents and clarifications in resolving disputes related to duty demands on transportation charges for return vehicles.