1996 (10) TMI 290

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..... 20 paise per Rs 100/- for the reason that the appellants incurred some further expenses towards insurance by way of deployment of staff and correspondence etc. He has pleaded that the Hon ble Supreme Court in the case of Bombay Tyre International reported in 1983 (14) E.L.T. 1896 (S.C.) has held that transportion and freight charges will include costs of insurance incurred by the assessee for the purpose of assessment. He has pleaded that the amount to be abated should be reckoned taking into consideration small premium paid by the appellants and the cost attributable to the insurance activity carried out by the appellants. He in this connection referred us to the judgment of the Hon ble Supreme Court in the case of Indian Oxygen Ltd. v. CC .....

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..... has urged that the appellants bona fide believed that the insurance expenses incurred towards the insurance activity undertaken by the appellants issue entitled to be reckoned towards the insurance cost. 3. Shri V. Thyagaraj the learned SDR has pleaded that the appellants have accepted that the premium paid was @ 17.45 paise per 100 rupees and the appellants have not shown the basis regarding claiming 20 paise per 100 rupees. This amounted to suppression of fact and therefore, longer period of limitation has been correctly invoked by the learned lower authority. 4. We have considered the pleas made by both the sides. We observe that the position in regard to abatement of the transportation charges which have been held to include the in .....

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..... ted. Section 4(4) of the CESA, 1944 talks about abatement only in respect of duty amount and transportation charges incurred in respect of the sales made ex-depot and since the expenditure in regard to insurance is also incurred, the same will also be abatable to the extent the premium paid in respect of the same. In the above view of the matter we find no force in the plea of the appellants so far as the plea of abatement in respect of cost of insurance is concerned. 5. In regard to the plea of limitation, the appellants had not come on record to give the break-up for arriving at the figure of 20 paise per 100 rupees of the value of the goods. When the appellants themselves had paid premium @ 17.45 paise per 100 rupees, while claiming hi .....

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