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TMI Blog2019 (11) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... Superintendent (AR) for the Respondent ORDER Raju This appeal has been filed by M/s. Ashok Transformers Pvt Ltd. Against confirmation of demand of Excise Duty. 2. The matter was fixed for hearing on many occasions, however, adjournments were sought. During last two occasions nobody appeared and when the matter was called today again nobody appeared. Therefore, the matter is being taken up for final disposal. 3. From the perusal of record it is seen that demand has been raised against the appellant on the ground that the appellant sold goods and during the sale raised separate bills for transportation and insurance. It was observed by the Revenue the amount collected by the appellant was in excess of the amount Freight, paid by the appellant to the transporter. Similarly insurance was connected in some cases where there was no corresponding payment to any Insurance Company. In the appeal memorandum it has been argued that the case of the appellant is covered by the decision of Hon ble Apex Court in the case of Central Excise, Noida v/s. Accurate Meters Limited, reported at 2009 (235) ELT, 581. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : ...In the invoices raised to Government buyers, mainly to Electric Boards, amount of freight and insurance, which is to be recovered from such buyers is shown separately. It is at a fixed rate i.e. equalized freight. It indicates that if the goods are cleared to government buyers, the freight and insurance‟ amounts are borne by the supplier party but it is recovered from the buyer at a fixed rate irrespective of freight amount, which has been incurred by the supplier party on sending the goods to the buyers. 9.It was accepted that in the orders placed for supply of meters, contracted prices pre-determined by the Electric Board have inter alia been shown as under : (i) Computed prices or Ex-factory have been quoted. (ii) Prices have been quoted as firm are on F.O.R. destination. (iii) The Ex-Factory are quoted without the element of the Excise duty, sales Tax/Trade Tax and packing, Forwarding, average Freight and Insurance charges, which are paid separately. (iv) Packing, Forwarding, average Freight and Insurance charges covered by supplementary orders wherein avera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.Indisputably, the authority in appeal reversed the said decision following the judgment of the CESTAT in the case of the assessee itself, holding: 2. The appellants sell the goods manufactured by them on ex-factory price basis. They also arrange the transport and transit insurance of the goods. Because the goods are insured in the appellants names during transit revenue contends that place of delivery of the goods should be taken as place of removal and Central Excise duty levied on a value including freight and insurance charges. 3. We have carefully perused the case records and considered the submissions made by both sides. This issue remains settled in favour of the assessee by the decision of this Tribunal in the case of Associated Strips (2002 (49) RLT 506). The appeals are allowed following our previous decision. 11.Before adverting to the decisions of this Court, we may notice Rules 4 and 5 of the Rules‟. RULE 4. The value of the excisable goods shall be based on the value of such goods sold by the assessee for delivery at any other time nearest to the time of the removal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly appropriated to the contract when the above procedure was followed and goods handed over to the carrier thus passing on the property in the goods to the buyer. 19. We may also refer to the provision contained under Section 39 of the Sale of goods Act which refers to the legal effect of delivery of the goods to a carrier by the seller. It is provided that where, in pursuance of a contract of sale, the seller is authorized or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer, is prima facie deemed to be a delivery of the goods to the buyer AIR 1966 Patna 346, admittedly, in the present case after appropriation of the good to the contract they were delivered to the carrier as per terms of the contract. Therefore, delivery to the carrier has to be taken as delivery to buyer. Revenue has no case that the goods are not sent to the buyer through carrier. On the other hand, as mentioned earlier, the only contention raised is that since the insurance of the goods in transit. At this juncture we may point out that in the case of Mauria Udyog Ltd. there is no insuran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 15.In that view of the matter and for the reasons stated hereinbefore, we have no doubt in our mind that the authority in appeal as also the Tribunal were correct in their view that the amount claimed by way of transportation charges and insurance cannot be considered for determining the value of the electric meters supplied. 6. We find that the appellant in the appeal memorandum is specifically stated that they are supplying the goods to various Electricity Boards and discharging duty on the entire value of the goods contracted. They have argued that in any case transportation and insurance charges related to post clearance actions and therefore, are not includible in the assessable value. It is seen that Revenue has relied on large number of cases where the facts are significantly different. In case of CCE, Mumbai-III Vs. Supreme Petrochem Ltd 2009 (240) ELT 38 (Tri-LB) relied by Revenue. It is seen that the dispute pertain to activity of loading within the factory premises unlike the activities in the instant case which are post clearance activities. 7. Revenue has also relied on East India Udyog Ltd Vs. C.C.E., Gaziabad 2017 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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