1998 (11) TMI 337 - AT - Central Excise

Summary

Issues:
1. Inclusion of packing, loading, and forwarding charges in the assessable value.
2. Limitation period for raising the demand.

Analysis:

Issue 1: Inclusion of charges in the assessable value
The Commissioner held that charges for packing, loading, and forwarding should be included in the assessable value as per Section 4 of the Central Excise Act, 1944. The appellants argued that the goods, being P.S.C. Poles, were never packed, and no forwarding charges were realized. They contended that the charges were paid by the State Electricity Board and reimbursed to the loaders. However, the Commissioner found the appellants at fault for not declaring these charges in their invoices. The Tribunal, after considering the submissions, upheld the Commissioner's decision, citing various court decisions supporting the inclusion of such charges in the assessable value. Therefore, the appeal failed on merits.

Issue 2: Limitation period for raising the demand
The appellants argued that the show cause notice issued beyond six months was time-barred since the Department was aware of the charges being collected. They relied on tribunal decisions and contended that there was no suppression of facts. The Department, however, argued that the limitation could be extended from the date of knowledge. The Tribunal considered the past issues raised by the Department and found that the Department was aware of the charges being collected. As a result, the Tribunal held that the demand was hit by limitation, ruling in favor of the appellants. Therefore, the appeal succeeded on the limitation issue.

In conclusion, the Tribunal allowed the appeal based on the findings. The charges for packing, loading, and forwarding were deemed includible in the assessable value, as per Section 4 of the Central Excise Act, 1944. However, the demand raised by the Department was considered time-barred due to the Department's prior knowledge of the charges being collected. The appellants were granted consequential reliefs in accordance with the law.