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TMI Blog2016 (9) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... lant, are subject to pre delivery inspection by the buyer and are ascertained in favour of the particular buyer before the delivery. Accordingly, we hold that the, transfer of ownership takes place at the factory gate when the goods are delivered. Therefore, the ld. Commissioner have erred in holding that the goods manufactured and cleared by the appellant, shall not be valued under Section 4(1)(a) but under Section 4(1)(b). We hold that the valuation shall be done in the appellants case only under Section 4(1)(a), as explained by Hon'ble Supreme Court in the case of C.C.E. Mumbai Vs. Official Liquidator for Brimco Plastic Machinery Pvt. Ltd. [2015 (10) TMI 2281 - SUPREME COURT]. - Decided in favour of appellant with consequential relief - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets completed at the premises of the buyer as assembling and installation of Air Handling Units (AHU) is being done at the premises of the buyers. Further, in this way, ownership of the subject goods remained with the appellant till delivery and installation of the AHU at the buyer's premises. Accordingly, the place of removal of goods in terms of Section 4(1) of the Act, is the buyer's premises. Further, on scrutiny of Ledgers and invoices of the appellant, it was found that the appellant has been discharging freight on the AHU from their unit upto the premises of buyers, but they are not including the freight in the assessable value of AHU. Accordingly, it appeared to Revenue that the AHU manufactured and cleared (goods) by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BG for one year. Further, in the delivery terms, it is mentioned freight at actual. Similarly, in the purchase order of NTPC Ltd., under the column of inspection, it is mentioned NTPC shall collect the material from vendor's premises and freight charges, it is mentioned will be borne by NTPC and further providing for inspection at source-Dadari (i.e. workshop of the appellant). Accordingly, learned Counsel, Mr. Rajesh Chibber urged that in almost all clearances made, the goods manufactured, are subject to pre delivery inspection, at which stage the goods become ascertained on inspection to a particular buyer and at that stage, the transfer of title takes place. The Ld. Commissioner have erred in concluding that the transfer of title ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. As per which, the transaction value is to be arrived at the time of clearance of the goods at the factory gate. All the expenses which are incurred post clearance (that too, after the supply of equipment) in respect of installation, etc., could not have been taken into consideration in the facts of the case. The learned Counsel urges that the facts are similar in the two cases and accordingly, prays for allowing the appeal with consequential benefits. 5. The Learned A.R. for Revenue has relied on the impugned order and the findings of the Ld. Commissioner. 6. Having carefully considered the rival contentions, we hold that it is evident that the goods have been delivered to the buyer at the factory gate as is evident from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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