2007 (7) TMI 175 - AT - Central Excise

Charges towards transport and outside handling required for the consignment of glass bottles are separately mentioned in the invoices, not to be included in the assessable value - charges made on the customer for delayed payment of duty cannot also form part of the assessable value but charges for secondary packing, are includible as appellant is not pressing the appeal in respect of such charges heavy penalty not imposable for such matter

Summary

Issues: Valuation of impugned goods under new Valuation Rules for the period 1-7-2000 to 31-3-2001.

Analysis:
1. The appellant contested duty demand related to the valuation of goods for a specific period under the new Valuation Rules. The additions in the assessable value were made for transport charges, charges for secondary packing, and charges for delayed payment to customers.

2. The appellant argued that charges for transport and outside handling, as well as charges for delayed payment of duty, should not be included in the assessable value as they were separately mentioned in the invoices and were not required under the new Valuation Rules. The appellant did not press the appeal regarding charges for secondary packing due to the lack of evidence of any specific requirement from the customer.

3. After reviewing the case records, the Tribunal found that charges for transport, outside handling, and delayed payment of duty should not be included in the assessable value. Therefore, the demands related to these charges were set aside. However, the demand concerning the inclusion of charges for secondary packing was confirmed since the appellant did not pursue the appeal on this issue.

4. The Tribunal noted that heavy penalties were imposed in this case due to the interpretation of valuation provisions. Considering this, the Tribunal deemed the penalties unwarranted and set them aside. The appeal was partly allowed based on the above decisions, and the cross-objection was also disposed of accordingly.