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TMI Blog2006 (10) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... ic tonne. They had set up a depot with a storage tank at Chennai harbour and had registered the same under Rule 174 of the Central Excise Rules. The assessee would transport CSL from their Manali factory by road to the harbour and from there to Nalco by sea. As per the agreement, Nalco would pay a fixed amount of Rs. 1469/- per DMT towards freight and other expenses for transport of CSL from the assessee's factory at Manali to the port of discharge at Vizakhapatnam. As per the agreement, Rs. 9500/- had been fixed as ex-factory price per DMT of CSL. On a tentative finding that the assessee had short paid duty leviable on the excisable goods cleared from their depot at the harbour, a show cause notice was issued to them. On conclusion of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred at the rate of Rs. 1309.99 (sea freight) alone was admissible as deduction in terms of Section 4(2) of the Act from the price for delivery at Vizag. Expenses such as packing, handling, demurrage, port dues, etc. incurred before delivery from depot were not admissible for deduction as the depot was the place of removal. He had observed that the depot was admittedly the place of removal. Sale price at the depot had to be adopted as the basis for assessable value and admissible deductions allowed. Therefore, price collected for delivery at port of discharge less freight had to be adopted as the assessable value as ordered by the Assistant Commissioner. Accordingly he dismissed the appeal. 3.Heard both sides. Learned Counsel for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CSL not only to Nalco but also to other buyers from this depot at harbour. Therefore, their contention that the tank was erected exclusively for storing the impugned goods for Nalco and to issue modvatable invoices cannot be countenanced. It is a regular depot with dealership registration. We have gone through the judgment in the case of JCB (supra) cited by the appellants. The judgment deals with a situation where the assessee hands over possession of the goods on sale to the buyer at the factory gate. Therefore the case law relied on by the ld. Counsel does not support the appellant's case. In the instant case, admittedly, goods are delivered to Nalco from the assessee's harbour depot under Rule 57GG invoices. As per the contract with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses incurred on account of the several factors which have contributed to its value up to the date of sale, which apparently would be the date of delivery, are liable to be included. Consequently, where the sale is effected at the factory gate, expenses incurred by the assessee up to the date of delivery on account of storage charges, outward handling charges, interest on inventories (stocks carried by the manufacturer after clearance), charges for other services after delivery to the buyer, namely after sales service and marketing and selling organization expenses including advertisement expenses cannot be deducted. It will be noted that advertisement expenses, marketing and selling organization expenses and after sale service promote t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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