9911796707
TMI Blog2001 (7) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee from the buyers in the guise of transportation charges than what has been actually spent by them in this regard are required to be added to the assessable value. The assessee had contended that arrangements with the customers for transport had been made on an agreed principle similar to the equalized freight, charges and the same were collected at the time of raising the invoice. Further it was contended that there may be some instances where the actual transport charges paid by the assessee fell through this amount collected by small margins of 5 to 10%. This excess actual transport charges cannot be foreseen at the time of raising the invoice and the actual transport charges depended upon various variables connected with tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand of duty to the difference of transportation charges paid by the customers and the actual transportation cost incurred by the appellants and accordingly confirmed the demand of duty on this count as per the Show Cause Notices raised. Since the Deputy Commissioner has restricted himself to the confirmation of demand of duty only to the difference of transportation charges paid by the customers and the actual transportation cost incurred by the appellants. I confine my findings only to this extent. The appellants have contended that the instances where the actual expenses incurred towards transportation were more than the transportation charges collected were excluded while arriving at the excess amounts shown in the Show Cause Notices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Act, 1944. I further find that the Hon ble CEGAT, SZB, Chennai in the case of Oblum Electrical Industries Pvt. Ltd. v. CCE, Hyderabad - 2000 (117) E.L.T. 724 (T), following the ratio of the Hon ble Supreme Court s decision in the case of Baroda Electric Meters Ltd., v. CCE - 1997 (94) E.L.T. 13 (S.C.) cited supra has held as under : Valuation (C.E.) - Freight - Equalised freight - Charges collected in excess of cost incurred for supplying Lightning Arrester to customers not includible in Assessable value - Section 4 of Central Excise Act, 1944. The appeal filed by the Department against the CEGAT s decision in the case of Oblum Electrical Industries Pvt. Ltd., referred to above, was dismissed by the Supreme Court as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so the sole consideration for sale but only the delivery of goods is made by the assessee at a place other than the factory/warehouse, then the assessable value shall be the transaction value without the addition of the cost of transportation from the factory/warehouse upto the place of delivery. However, exclusion of cost of transportation is allowed only if the assessee has shown them separately in the invoice and the exclusion is permissible only for the actual cost so charged from his buyers. If the assessee has a system of pricing and sale at uniform prices inclusive of equated freight for delivery at factory gate or elsewhere, no deductions for freight element will be permissible. The learned SDR on the basis of the above stated p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals). The Commissioner (Appeals) has dealt with the issue covered under the cited judgments of the Hon ble Supreme Court. Hence there is no grounds made out in the Revenue appeals and the same are required to be rejected as the issue is covered by the judgments of the Hon ble Supreme Court. 5. On consideration of the submissions made and on perusal of the entire records including the impugned orders, we notice there is lot force in the submissions made by the learned Counsel for the respondents. The issue pertains to transport charges which are not required to be added in view of the contract entered into by them. This issue has been gone into by the Hon ble Apex Court in the case Baroda Electric Meters (supra) and also in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
