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TMI Blog2010 (1) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... 52/- was sought to be demanded on the allegation that the party have contravened the provisions of Section 3 and Section 9(1)(b)of the Central Excise Act, 1944 read with Rule 8 of the Central Excise Rules, 2002. The original authority dropped the proceedings initiated under notice. The order of the original authority was reviewed by the Commissioner and appeal was filed before the Commissioner (Appeals). Commissioner (Appeals) upheld the order of the original authority thus rejecting the appeal of the Department. Held that - The ratio in determining the price by excluding the amount collected as freight as laid down in the judgment of the Hon’ble Supreme Court in the case of Baroda Electric Meter v. Collector 2008 -TMI - 44608 - SUPREME COU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s only Rs. 12,25,600/-. As a result, the assessee has recovered Rs. 3,15,400/-, in excess from the buyers towards transportation cost which should be treated as part of the price of the "exempted product" namely, the rectified spirit. Accordingly, and amount of Rs. 25,252/- was sought to be demanded on the allegation that the party have contravened the provisions of Section 3 and Section 9(1)(b)of the Central Excise Act, 1944 read with Rule 8 of the Central Excise Rules, 2002. 3.2 The original authority dropped the proceedings initiated under notice dated 23-9-05. The order of the original authority was reviewed by the Commissioner and appeal was filed before the Commissioner (Appeals). Commissioner (Appeals) upheld the order of the origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e exempted final product charged by the manufacturer for the sale of such goods at the time of clearance from the factory. Transportation is a cost incurred for activity after clearance from the factory, and thus the same cannot be included for the purpose of determining total price of the exempted goods. It has not been shown that the alleged excess freight collected by the respondents from the buyers of rectified spirit had any nexus with the price of the goods. The Commissioner (Appeals) has relied on the decision of the Hon'ble Supreme Court in the case of Baroda Electric Meters Ltd. v. Collector - 1997 (94) E.L.T. 13 (S.C.) in coming to the conclusion that profit made in such activity is not includible in the price of the goods. The de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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