2012 (12) TMI 305

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ess amount of freight collected by the assessee need not form part of assessable value - if the place of removal of goods is factory of the assessee then transport charges will not be included in the assessable value – appeal dismissed
Justice Ajit Bharihoke, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri Nagesh Pathak, AR, for the Appellant. None, for the Respondent. [Order per : Justice Ajit Bharihoke, President]. - This appeal is directed against the impugned order of Commissioner (Appeals), Customs and Central Excise, Chandigarh whereby he allowed the appeal of the assessee and set aside the order-in-original passed by the adjudicating authority confirming the central excise duty demand amounting to Rs. 6,81,428/- with interest an .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed the goods to the place of destination in their own vehicle against the payment of freight charges, hence, it cannot be said to be a case of sale of goods at factory gate and actually the transaction amounts to sale on FOR basis. Thus, it is submitted that the case is covered under the provision of Section 4(1)(b) of the Central Excise Act, 1944 and as such the valuation for the purpose of excise duty ought to have been done in accordance with Rule 5 Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. It is further contended by the departmental representative that the Commissioner (Appeals) has erred in relying upon the case of M/s. Baroda Electric Meters Ltd. [1997 (94) E.L.T. 13 (S.C.)] and the case of Esco .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... are sold for delivery at a place other than the place of removal, then the value of such excisable goods shall be deemed to be the transaction value, excluding the cost of transportation from the place of removal upto the place of delivery of such excisable goods. Explanation 1. - "Cost of transportation" includes - (i) the actual cost of transportation; and (ii) in case where freight is averaged, the cost of transportation calculated in accordance with generally accepted principles of costing. Explanation 2. - For removal of doubts, it is clarified that the cost of transportation from the factory to the place of removal, where the factory is not the place of removal, shall not be excluded for the purposes of determining the v .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X