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TMI Blog2015 (9) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... - P. K. Jain, Member (Technical) And Hon ble Mr Ramesh Nair, Member(Judicial), JJ. For the Appellants : Shri. Vishal Agrawal, Advocate For the Respondent : Shri. Ashutosh Nath, Asst. Commissioner(A.R.) ORDER Per : Ramesh Nair This appeal is directed against Order-in-Appeal No. BPS(220)16/2004dtd. 10/6/2004 passed by the Commissioner of Central Excise Customs(Appeals), Aurangabad wherein Ld. Commissioner(Appeals) upheld the order-in-original dated 28/9/2001 and rejected the appeal of the appellant. The facts of the case are that the appellant are engaged in the manufacture of PIJF falling under Chapter 85 of Central Excise Tariff Act, 1985. Appellants have cleared excisable goods viz. Jelly filled cable to the to the department of telecommunication and claimed deduction on account of freight from the assessable value-. Revenue has issued a show cause notice No. F. No. V.Ch. 85(15) 23/SSIL/(JFTC) Adj/2001 dated 2/3/2001 wherein deduction on account of freight was proposed to be denied and consequently demand of duty of ₹ 29,29,426/- for the period from 7/2000 to 1/2001 was issued. In the show cause notice it was contended that the deduction on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made there under only condition allowing deduction of freight is freight should be shown separately in the invoices and it should be actual cost of transportation. If these two criterion are fulfilled there is no reason for denying the deduction of freight. He submits that basic concept of valuation is that the transportation should not be made part and parcel of the transaction value, with this concept only statutory provision was made for deduction of transportation charges from the assessable value of the goods for the purpose of charging excise duty. Without prejudice he also submits that in view of the various judgments even if it is presumed that the freight in the present case is equated freight though not admitted, the deduction of said freight is also allowable. He placed reliance on the following judgments: (a) Goodyear India Ltd. Vs. Commissioner of C. Ex. Delhi-IV [2014(301) ELT 410 (Tri- Del.)] (b) Filament India Vs. Commissioner of Central Excise, Jaipur[2003(160) ELT 314 (Tr. Del.)] (c) Bhopal Wires Pvt. Ltd. Vs. Commissioner of Central Excise, Bhopal[2010(253) E.L.T. 681(Tri-Del.)] 3. On the other hand, Shri. Ashutosh Nath, Ld. Asstt. Commissioner(A.R.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted with an adjustable price quotation will be treated as non-responsive and rejected. 9.4 The unit prices quoted by the bidder shall be in sufficient detail to enable the purchaser to arrive at prices of equipment/system offered. 9.5 DISCOUNT, if any, offered by the bidders shall not be considered unless they are specially indicated in the price schedule. Bidders desiring to offer discount shall therefore modify their offers suitable while quoting and shall quote clearly net price taking all such factors like Discount, free supply, etc. into account. 9.6 The price approved by the Department for procurement will inclusive of levies and taxes, packing, forwarding, freight and insurance as mentioned in para 9.1 above. Break-up in various heads like ED, sales tax, insurance, freight and other taxes paid/payable as per clause 9.2(i) is for the information of the purchaser and any change in these shall have no effect on price during the schedule period of delivery. 9.7. The freight by sea for transportation of equipments/Stores from the nearest port in the main land to Andaman Nicobar Islands will be reimbursement to the supplier a the concessional rates levied by Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 value of the excisable goods.] From the above rule it can be seen that when goods are sold for delivery at a place other than place of removal, transaction value of excisable goods shall not include actual cost of transportation from the place of removal up to the place of delivery of such excisable goods. As per the rule reproduced above, in order to allow the deduction of the cost of transportation following criterion should be fulfilled: (a) The goods should be sold for delivery ..... X X X X Extracts X X X X X X X X Extracts X X X X
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