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TMI Blog2018 (3) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... removed by the Appellant on payment of central excise duty by assessing the goods on cost construction based valuation. They were issued a Show Cause Notice alleging that while arriving at the value of the goods for payment of central excise duty, they did not consider the landed cost of raw material and packing materials supplied free of cost by the buyers, which included the cost of transportation, insurance and overheads incurred on such inputs and packing materials, thus has contravened the provision of Section 4 (1)(b) of the Central Excise Act, 1944 read with Rule 6 of Central Excise Valuation Rules, 2000, which resulted in under-valuation of goods. It was alleged that the freight, administrative expenses @ 3% of raw material consume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e place of removal and the place of buyer, which means that the value furnished in the invoice /challan on which the inputs were supplied to the Appellant would normally are not includible in transportation charges. That in the case of the 5 invoices the transportation expenses were separately charged. In absence of any other evidence furnished, the adjudicating authority going as per best judgment assessment has loaded the value of freight based on perusal of 5 invoices across the board which is consistent with the provision of Section 4 of the Central Excise Act read with Valuation Rule, 2000. He thus upheld the adjudicating order. 2. None appeared for the Appellants. 3. Shri D.S. Chavan, Ld. Superintendent (A.R.), appearing for the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he invoice value does not include the transportation cost and other charges in such case it is to be considered that the prices are inclusive of transportation, insurance and other charges. We further find that M/s Indofil Chemicals had given a certificate to the effect that the value of goods consigned by them to the Appellant includes all the incidental charges. No any contrary evidence to the above has been brought on record by the Revenue. It is also found that the other suppliers have directly consigned the goods to the Appellants on the instruction of the principal which clearly means that the value of the goods includes the transportation cost, insurance and other incidental charges. The Revenue has not brought any evidence on record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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