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TMI Blog2018 (9) TMI 1570X X X X Extracts X X X X X X X X Extracts X X X X ..... ansport arrangement through rail is includible in assessable value? - Held that:- Since the said charges are collected after the place of removal which is the factory gate. On the very basis, it can be definitely held that the service charges collected for cargo handling on the instruction of the contractor cannot be included in the assessable value - demand set aside. Appeal allowed - decided in favor of appellant. - Appeal No. E/75/2011 - Final Order No. 42317/2018 - Dated:- 27-8-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Akhil Suresh, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent ORDER Per Bench The appellants are eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the Commissioner (Appeals) has excluded the railway freight. These are service charges which are not relatable to sale effected by the appellant to the contractors on whose behalf the railway transport is arranged. Once the appellants have dispatched the goods from their end, that is the place of removal, which is the factory, contract terms are completed. In other words, the title to the goods is passed on to the contractor and the subsequent transport of goods is only at the instance of the contractor as it can be seen from one of the contracts that the consignee has been indicated as OS, S T Stores, Projects, Boiguda, South Central Railway, Secunderabad. The appellants have rendered such services only as per the instructions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding / cargo handling of the goods for transportation by railway. The Commissioner (Appeals) has held that the freight charges are not includible in the assessable value since the said charges are collected after the place of removal which is the factory gate. On the very basis, it can be definitely held that the service charges collected for cargo handling on the instruction of the contractor cannot be included in the assessable value. 6. From the above discussion, we hold that the demand raised alleging that the service charges as well as pre-delivery inspection charges are includible in the assessable value cannot sustain and requires to be set aside, which we hereby do. The impugned order is set aside and the appeal is allowed with c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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