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TMI Blog2017 (2) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by M/s Tata Iron & Steel Co. Ltd. (TISCO) for supply of raw materials to the respondent is including freight element from TISCO to the respondent s factory or it should be added over and above the cost of the raw materials mentioned in the invoices for arriving at the assessable value of the job-work goods manufactured and returned by the respondent to the principal M/s TISCO. 3. As regards appeal No. E/411/06, the learned Commissioner after examining the fact found that for the certain period there are evidences of inclusion of freight in the invoices issued by TISCO to the appellant. However, for the period June, 95 to July, 97 and Sept, 98 to March, 99, the learned Commissioner did not find proper evidence to establish that the frei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er satisfying that the freight paid by TISCO is included in the value shown in the invoices issued by M/s TISCO, dropped the demand. Therefore, there is no scope to interfere in the impugned orders. 6. We have carefully considered the submissions made by both sides. For better understanding of the fact, we reproduce the relevant findings of both the impugned orders. In the order dated 21.2.2005, the learned Commissioner has recorded the following findings: - "8.2 As regards the inclusion of freight charges from TISCO, Jamlshedpur to the noticee s factory premises at Khopoli, I observe that till September 1996, TISCO had not included freight charges so incurred in their assessable value for the purposes of payment of duty and the consulta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to the noticees premises at Khopoli, has been included in their assessable value cannot be acceded to, Hence the noticee is liable to pay the duty on the freight charges from TISCO Jamshedpur to their premises at Khopoli amounting to Rs. 21,18,535/- for the entire period from June 1995 to July 1997 and for the period from September 1998 to March 1999." In order dated 22.6.2005, the Commissioner has recorded the following finding: - "8. As regards the inclusion of freight charges from TISCO, Jamshedpur to the noricees factory premises at Khopoli, firstly, I observe that the definition of "place of removal" was amended with effect 'from 28-9-1996 to include the depot, which in effect meant that all the expenses incurred till the pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue by TISCO on which duty was paid by TISCO. Hence the demand of duty on the freight charges from TISCO Jamshedpur to their premises at Khopoli for the period from August, 1997 to August, 1998 is not sustainable." From the findings of both the impugned orders reproduced above, it can be seen that the Commissioner has considered that the freight was paid by M/s TISCO and the invoices for consolidated amount was raised by M/s TISCO and no freight was shown separately in the invoices. In these facts and circumstances, there is no doubt that even though the freight was paid by M/s TISCO, since invoice does not show freight separately, the freight is deemed to be included in the invoice value. Therefore, the proposal to add the freight amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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