2001 (1) TMI 341 - AT - Central Excise

Summary

Issues: Valuation for Central Excise Duty, Penal provisions under Sections 11AB and 11AC, Inclusion of transportation charges in assessable value, Duty on loading and unloading charges

Valuation for Central Excise Duty:
The appellant argued that transportation charges should not be part of the assessable value for Central Excise duty as the duty is leviable on the manufacture and not on transportation of goods. Citing the Supreme Court case of Indian Oxygen Ltd., it was emphasized that the assessable value should be based on wholesale prices of goods and should not include transportation charges. The appellant also contended that loading and unloading charges incurred outside the factory gate should not be included in the assessable value. The Tribunal noted the Supreme Court's ruling that loading charges within the factory are includible, but those outside are excludible. The matter was remanded for re-examination to determine the duty amount collected by the assessee, considering the decisions in Indian Oxygen Ltd. and Baroda Electric Meters Ltd.

Penal provisions under Sections 11AB and 11AC:
The Tribunal held that penal action cannot be initiated under Sections 11AB and 11AC for the period in question as the amendment provisions were introduced after the dispute period. Consequently, the penalty and interest levied on the assessee were set aside based on this position.

Inclusion of transportation charges in assessable value:
The revenue contended that the assessee collected duty on loading and unloading charges, which should be included in the assessable value. However, the Tribunal found merit in the appellant's argument that penal provisions could not be applied for the period in question due to subsequent amendments. Therefore, the penalty and interest were canceled.

Duty on loading and unloading charges:
The Tribunal directed a re-examination by the adjudicating authority to determine the duty amount collected by the assessee, specifically focusing on transportation charges incurred outside the factory premises. The matter was to be reconsidered in light of relevant legal decisions, and the appellants were granted the opportunity to present their case on the penalty, which would be re-determined in the remand proceedings. The appeal was disposed of accordingly.