2017 (2) TMI 888

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ales under contract, basic price, duties and taxes and 'other charges' were the consideration. The basic price is claimed to include packing in 3-ply boxes while 'other charges' include octroi and turnover tax, insurance and secondary packing specifically sought by customers. The goods sold at factory gate were supplied in 3-ply packing. Price lists for the period from 1988 to 1993 had been approved. 2. The products are perishable and 15 kgs are packed in each 3-ply mono-carton composed of 30 packets of 6 grams each wrapped in one polythene bag. Factory gate sale was also in this form. Sometimes, at request of buyers, two mono cartons are placed in a 5-ply carton and strapped to form a master carton which may, also on demand, be supplement .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... recoveries of freight from customers is less than the amount expended; deduction from sale price for arriving at the price declared under rule 173C of Central Excise Rules, 1944 is the 'equalized freight.' The recovery of excess freight has been challenged by relying on the decision of the Hon'ble Supreme Court in Baroda Electric Meters Limited v. Commissioner of Central Excise [1997 (94) ELT 13 (SC)]. It is also submitted that the addition of half the freight to assessable value for use of transport on return journey is not appropriate as these are, in any case, empty runs. Reliance is placed on Majestic Auto Ltd v. Commissioner of Central Excise [2004 (166) ELT 172 (T). 8. There is no doubt that the decisions cited do allow the deductio .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rred. 9. On the issue of enhancement of assessable value to conform to the price charged from Continental Stores as the base value, it was contended on behalf of the appellant that contract price with both the bulk purchasers are specifically negotiated and hence unique to the two entities. It was further submitted that the difference in quantity handled by Cyrus Yeast justified a lower price. Besides, it was pointed out that as Continental Stores insisted on packing in master cartons for ensuring safe delivery at other location a separate treatment for computation of assessable values is valid. 10. We are unable to concur with the findings of the adjudicating authority on this issue. Deriving of assessable value from contract price, as a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X