2000 (12) TMI 274 - AT - Central Excise

Summary

Issues: Valuation of goods sold in the domestic market

In this judgment, the Appellate Tribunal CEGAT, New Delhi considered the issue of whether expenses incurred by the assessee in transporting goods meant for export should be deducted from the price of goods sold for domestic consumption to determine their assessable value. The respondent, a manufacturer of two-wheeled motor vehicles, sold certain quantities domestically after paying central excise duty. The dispute centered around the valuation of goods sold domestically, with the respondent claiming deductions for transportation expenses. The respondent argued that even though the freight charges realized from dealers were not fully utilized for transport expenses, they should be excluded from the assessable value based on previous tribunal decisions. However, Section 4 of the Central Excise Act specifies that transportation charges for goods assessed to duty cannot be excluded if they are related to goods exported, as these goods are distinct and separate under the Act. The tribunal found that the departmental authority erred in excluding transportation charges for goods meant for export from the price of goods sold domestically.

The respondent's counsel relied on a previous tribunal order to support their argument, but the tribunal found no support for the contention that transportation charges for export goods should be excluded from the assessable value of goods sold domestically in that order. The tribunal clarified that the decision in the Baroda Electric Meters case, cited by the respondent, was not applicable to the current case involving transportation charges incurred by the manufacturer for goods sold through export. Ultimately, the tribunal allowed the appeal and set aside the impugned order, ruling in favor of the appellant.