2016 (1) TMI 698

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..... t for delivery of goods to the buyer after their clearance from the factory has nothing to do with the assessable value of the goods unless it is established that place of removal for valuation purpose is the delivery point at the buyer's premises. No such evidence is forthcoming in this case. - Decided in favour of assessee Certain amount collected, in excess of actual freight, from the buyers to be added in the assessable value - Held that:- The appellants collected certain amount towards freight from their buyers, but actually spent less amount towards such freight. The Revenue added this excess amount in the assessable value. We find that when the goods are delivered ex-factory and the place of removal is factory gate, the freight e .....

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..... ; 1,40,000/- on the appellant. Both Revenue and appellant filed appeal against the said order. The learned Commissioner (Appeals) dismissed appellant's appeal vide order dated 12/12/2006. The appeal by the Revenue to enhance the penalty was allowed by the learned Commissioner (Appeals) vide order dated 24/01/2007. The present appeals are against these two orders of learned Commissioner (Appeals). 3. The learned Counsel for appellant Shri Rajesh Chhibber, submitted that the issue involved is regarding inclusion of freight charges in the assessable value. He submitted that the goods were sold for delivery ex-factory and their case is covered by Clause (a) of sub-Section (1) of Section 4 of Central Excise Act. This fact was not rebutted .....

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..... requires to be added in the assessable value. The appellants collected certain amount towards freight from their buyers, but actually spent less amount towards such freight. The Revenue added this excess amount in the assessable value. We find that when the goods are delivered ex-factory and the place of removal is factory gate, the freight element has no bearing on the valuation of the product. The freight amount not being shown in the invoice or some additional income has come to the appellant from freight charges cannot be the reason to add extra amounts in the invoice meant for ex-factory delivery of goods. There should be clear evidence that the invoice price for the goods for delivery at the factory gate is not reflecting the correct .....

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