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TMI Blog2012 (4) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... . 50,000/- under Rule 25 of Central Excise Rules, 2002. 2. The appellant is manufacturer of electrical insulator. During the period April, 2002 to December, 2003, the appellant had supplied electrical insulator to their customers and charged them transportation charges shown in the invoices in excess of the actual transportation charges paid to the transportation. 3. The Department was of the view that since the appellant has charged excess transportation charges from his customer, in view of Rule 5 of Valuation Rules, 2000, appellant is liable to pay excise duty on excess transportation charges. Accordingly, four show cause notices were issued to the appellants which were contested. The adjudicating authority after affording an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon value done in accordance with Rule 5 is not sustainable. In support of this contention the appellant has relied upon judgment of Supreme Court in Baroda Electric Meters Ltd. v. C.C.E. reported in 1997 (94) E.L.T. 13 (S.C.). 5. Ld. AR on the contrary has argued in support of the impugned order. He has also submitted that Rule 5 of Valuation Rules, 2000 is clear which provides that in the cases in which the goods are transported to the place of delivery by the assessee, the transaction value for the purpose of excise duty shall be the transaction value mentioned in the invoice excluding the transport charges. Ld. AR has submitted that explanation 1 to Rule 5 clarifies that transportation cost referred to in Rule 5 is the actual tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 value of the excisable goods." 7. On bare reading of Section 4(1)(a) it is clear the cases where the goods are sold by the assessee for delivery at the time of place of removal and the assessee and the buyer are not related then the price is the sole consideration for the sale and such value shall be the transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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