2009 (4) TMI 384 - AT - Central Excise

Valuation- The duty has been demanded on the excess freight collected by the appellants. When the freight collected is in excess of the actual the amount represented a profit made on the freight. It cannot form part of the assessable value of the goods. In the light of the decision of Baroda Meters held that there is no merit in the impugned order and the duty on excess freight is not demandable. Hence interest and penalty cannot be levied. Therefore we allow the appeal with consequential relief if any.

Summary

The appellate tribunal CESTAT, Bangalore, consisting of Members T.K. Jayaraman and M.V. Ravindran, heard an appeal against an order passed by the Commissioner of Customs & Central Excise, Hyderabad-III Commissionerate. The appellants were accused of not discharging duty liability for specific periods due to excess freight charges collected. The Commissioner confirmed the demand for excise duty and interest, and imposed penalties. The appellants contested the order, arguing that the excess freight should not be included in assessable value of goods, citing the Baroda Meters case and other relevant case laws. The tribunal, after careful consideration, ruled in favor of the appellants, stating that excess freight profits should not be subject to duty. The appeal was allowed, and interest and penalties were not imposed. The decision was delivered on April 17, 2009.