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TMI Blog2014 (4) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... on value. In any other case, where the goods are not sold at the time and place of removal, the value shall be determined in terms of provisions of Central Excise Valuation Rules, 2000. Thus, in terms of Section 4 (1), the assessable value of the goods is the transaction value at the time and place of removal. The place of removal during the period of dispute, as mentioned above, covered only the factory or any other place or premises of production or manufacture of the excisable goods or a warehouse or any place wherein the excisable goods have been permitted to be deposited without payment of duty and, as such, the place of removal did not include depot, premises of consignment agents or any other place or premises from where the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which should also include the cost of transportation from the factory to the depots. On this basis, after issue of two show cause notices dated 22/10/2001 and 20/03/2002 respectively, the duty demands totalling ₹ 1,91,02,584/- alongwith education cess of ₹ 1,20,629/- were confirmed. On appeal being filed to Commissioner (Appeals), the Commissioner (Appeals) by common order-in-appeal No. 85-86/CE/APPL/KNP/2005 dated 28/02/2005 allowed the appeals and set aside the Deputy Commissioner s orders on the ground that during the period of dispute, the definition of place of removal did not cover the depot or consignment agents premises or any other place from where the goods after clearance from the factory are sold and only covered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he period of dispute in this case is from 01/10/2000 to 30/11/2001. During the period of dispute, the respondents were clearing their goods to depots on stock transfer basis from where the same were being sold to dealers. The point of dispute is as to whether the cost of transportation of the goods from the factory gate to the depots would be includible in the assessable value of the goods. According to the department, in view of the provisions of Rule 7 of the Central Excise Valuation Rules, the assessable value of the goods would be the sale price of the goods at depots at the time of removal of the goods from the factory and accordingly the assessable value of the goods would also include the cost of transportation from the factory to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment. 6. Thus, according to this Rule, when the excisable goods are not sold at the time and place of removal but are stock transferred to a depot or premises of a consignment agent or any other place or premises from where the same are to be sold after their clearance from the place of removal, the assessable value shall be the normal transaction value of such goods at the depot/ consignment agents premises or other premises to unconnected buyers at the time of removal of the goods from the factory and if at that time, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Valuation Rules, 2000. 7.2 Thus, in terms of Section 4 (1), the assessable value of the goods is the transaction value at the time and place of removal. The place of removal during the period of dispute, as mentioned above, covered only the factory or any other place or premises of production or manufacture of the excisable goods or a warehouse or any place wherein the excisable goods have been permitted to be deposited without payment of duty and, as such, the place of removal did not include depot, premises of consignment agents or any other place or premises from where the goods after their clearance from the factory are to be sold. In view of this, when the goods during the period of dispute were sold after their clearanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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