9911796707
TMI Blog2012 (11) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... 001-02 to 2003-04. The Department's allegation is that during this period in some cases the freight charged on equalized basis from the buyers is more than the freight expenses actually incurred and excess amount recovered as freight, do not form part of the transaction value. It is on this basis that the duty demand of Rs. 94,843/- has been upheld against the appellant with interest and equal amount of penalty has been imposed. The order of adjudicating authority was upheld by Commissioner of Central Excise (Appeals). Against this order of the Commissioner (Appeals), this appeal has been filed with the stay application. 2. Though this matter is listed for hearing of the stay application, after hearing the matter for some time, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment is squarely applicable to the facts of this case and that in view of this, the impugned order is not correct. 4. Shri S.R. Meena, learned Senior Departmental Representative, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and emphasized that during the period of dispute, the assessable value was transaction value as defined in Section 4 of the Act and hence, the differential freight amount would be includible in the assessable value. He, therefore, submits that there is no infirmity in the impugned order. 5. We appreciate the contention of the respective parties. During the period of dispute, under Section 4(i), when the duty of excise on any goods is chargeable with reference to their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action value at the factory gate and would not include the freight from the factory gate to the customer's premises. Learned A.R. has urged to include the differential freight charged from the transporter to the transaction value on the premise that this is a ploy used by the assessee to depress the transaction value of the goods with a view to evade excise duty. We do not agree with the submission for the reason that the appellant have clearly disclosed the price of the goods independent of freight charge in the invoices and secondly, the freight charged from the various buyers was on average basis irrespective of the distance at which the goods were to be supplied. There can be some cases when the equalized freight is more than the actual ..... X X X X Extracts X X X X X X X X Extracts X X X X
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