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TMI Blog2019 (7) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The only possible criteria for the purpose is as to whether the property in goods stands transferred to the buyer at the time when the goods are cleared whether from the factory of the manufacturer, its depot or warehouse or from any other place. No doubt the place can be the buyer s place as well but the criteria still remains the conclusion of sale. From the adjudicating authorities order itself it is apparent that except for inclusion of freight prices in the price of purchase, every other formality of completing the sale got concluded at the time of clearance itself. It has been acknowledged in the Order as well as in the show cause notice that all the verifications, approvals as were agreed to be required by the buyer also got condu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,002/- respectively alongwith the interest at the appropriate rate and the proportionate penalty. This proposal was initially confirmed by the original adjudicating authority vide Order No. 3826 dated 25.11.2016. Being aggrieved, an Appeal was preferred before Commissioner(Appeals) who vide the impugned Order has set aside the demand and has allowed the Appeal of the assessee. Being aggrieved, the Department is before this Tribunal. 3. We have heard Shri P. Juneja, learned Authorised Representative on behalf of the Department and Shri R.G. Choudhary, learned Advocate on behalf of the assessee/respondent. 4. It is submitted on behalf of the appellant/Department that the original Adjudicating Authority has meticulously examined the contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the transaction value. Appeal is accordingly prayed to be dismissed. 6. After hearing both the parties and perusing the entire record, we observe and hold as follows: 6.1 The original Adjudicating Authority had confirmed the demand observing that in the contracts awarded to the assessee it is mentioned that prices are all adjusted FOR destination i.e. price inclusive of freight and insurance charges, excise duty, VAT and FOR delivery of material in buyers' store. Hence the FOR amount has to be the part of the transaction value. While adjudicating the correctness of these observations it is necessary to look into the definition of 'transaction value' as per Section 4(3)(d) of Central Excise Act which reads as follows: "As per Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support from Section 19 of Sale of Goods Act, 1930 which reads as follows: "19. Property passes when intended to pass.- (1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. (2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case." It becomes clear from these provisions that whether the FOR prices are inclusive or not at the time of clearances is not the criteria for assessing the transaction value. The only possible criteria for the purpose is as to whether the property i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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