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TMI Blog2016 (6) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... own separately in the invoices. As regards the first criterion, the place of removal is factory gate, however the goods were delivered at customer place. Therefore goods were sold for delivery not at the place of removal (i.e. factory gate) but at other place i.e. customer door step. From the sample invoices it is seen that the freight shown in the invoices is in addition to basic price of the goods. It is clear from the terms of the bid documents also that basic price and other components have to be indicated separately. Therefore, there is no dispute that basic price and the freight components are clearly indicated separately in the invoices and therefore criterion i.e. cost of transportation should be in addition to the basic price of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . However, the element of freight was indicated separately in the invoices issued for the goods. The controversy arose with the Revenue seeking to disallow the deduction for freight on the ground that the freight indicated was equalised freight and hence not actual transportation charges. The consequential differential duty was demanded by the original adjudicating authority vide order dated 31.08.2006. Since this demand was held to be unsustainable by the Commissioner (Appeals) vide order dated 29.12.2006, the Revenue is in appeal. 2. The main argument putforth by the respondent was that, since the delivery is FOR destination, a deduction for transportation charges will have to be allowed under Section 4(1)(b) of the Central Excise Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 at a place other than place of removal. (b) Cost of freight should be in addition to the price for the goods. (c) Cost of transportation should shown separately in the invoices. 5. As regards the first criterion, the place of removal is factory gate, however the goods were delivered at customer place. Therefore goods were sold for delivery not at the place of removal (i.e. factory gate) but at other p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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