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TMI Blog2019 (3) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... both counts, is hit by the impropriety of inclusion of such amount as ‘additional consideration’ envisaged in the said Rules - appeal allowed - decided in favor of appellant. - APPEAL NOS: E/424 & 425/2009 - A/85146-85147/2019 - Dated:- 21-1-2019 - Shri C J Mathew, Member (Technical) And Dr Suvendu Kumar Pati, Member (Judicial) Shri Neerav Mainkar, Advocate for appellant Shri AS Parab, Assistant Commissioner (AR) and Shri SJ Sahu, Assistant Commissioner (AR) for respondent ORDER Per: C J Mathew Both these appeals, of M/s Ambhe Ferro Metal Processors Pvt Ltd and, its director, Shri Ashish Gupta, seek relief from order-in-appeal no. KKS/51 52/Th-I/09 dated 2nd March 2009 of Commissioner of Central Excise (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is whether the amount collected by the assessee from the dealer in excess of the actual cost of transportation should be held to be includable in the assessable value of the goods by virtue of Rule 5. The rule only provides that actual cost of transportation has to be excluded from the assessable value where the goods are sold in the circumstances specified under Section 4(1)(a) of the Act. In the present case, the place of delivery is the factory gate and, even according to the Revenue, the cost of transportation from the factory gate to the buyers premises is liable to be excluded from the assessable value of the goods. The rule does not provide for inclusion of any excess freight in the assessable value in the circumstances specified un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from a dealer towards freight, it cannot be considered to be an amount collected by the assessee by a reason of, or in connection with, the sale of the goods. It would be an amount collected by the assessee in connection with the transportation of the goods. The nexus is not between the amount and the sale of the goods but between the amount and the transportation. This aspect was noted by their lordships in the case of Baroda Electric Meters (supra) and it was held that any excess amount collected by the assessee from their customers would be a profit made on transportation and hence such amount would not be includable in the assessable value of the goods since the duty of excise was a tax on manufacture and not on any profit made on tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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