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TMI Blog2020 (4) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... there is some additional consideration for sale, then such additional consideration also has to be included to the transaction value to determine the assessable value. This is precisely what the appellant had done. The Department cannot add separately all the costs incurred by the appellant which have not been reimbursed by the buyer in addition to the price. The demand made in the impugned order and the penalties imposed are unsustainable - Appeal allowed - decided in favor of appellant. - EXCISE APPEAL No. 2638 OF 2010 - A/30771/2020 - Dated:- 22-1-2020 - HON BLE DR. D.M. MISRA, MEMBER (JUDICIAL) HON BLE P.V. SUBBA RAO, MEMBER (TECHNICAL) APPEARANCE: None for the appellant. Shri N. Bhanu Kiran, Asst. Commissioner/AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice per sleeper set, the buyer, Indian Railways will also pay an amount towards transportation of raw materials as per the rates specified by the Railway Board (regardless of the fact that the actual freight incurred could be higher). 5. On verification of the accounts of the assessee, the department found that the appellants were not getting reimbursed fully for the entire cost of transportation of inputs namely HTS wires, Inserts and cement incurred by them. They were getting reimbursed only as per the agreement while the actual cost of transportation incurred by them was much higher. On the input service of transportation of the raw material, they were availing CENVAT Credit. However, while paying the Central Excise Duty, they were pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed upon Shri M.S. Pilli, Manager of the appellant firm. Aggrieved by this Order-in-Appeal, the present appeal is filed. 7. We have examined the show cause notice, order of the original authority, the impugned order and the grounds of appeal as well as the arguments put forth by the Ld. DR. The crux of the matter is whether the non-reimbursed portion of the cost of transportation of the input material incurred by the appellant is includable in the assessable value under section 4 of the Central Excise Act, 1944. The Central Excise duty is levied on the manufacture of goods. Section 3 of the Central Excise Act is the charging section for this duty which can be levied on the basis of quantity (specific rate of duty) or value (advalore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional consideration is received, such as supply of raw materials, reimbursement of some other costs, as a consideration for the sale, then those elements also have to be included. In terms of Section 4(3)(d) of Section 4 of the Central Excise Act, 1944, Transaction Value means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of or in connection with the sale, whether payable at the time of sale or at any time, including but not limited to, any amount charged for, or to make provision for advertising or publicity, marketing and selling organisation expenses, storage, outward handli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbursed by the Indian Railways. The argument of the Department is that the appellant had availed CENVAT Credit on the entire cost of transportation of inputs but only paid duty on the reimbursed amount. 10. We do not find any infirmity in what the appellant had done. The appellant is entitled to avail CENVAT Credit of the duty paid on all inputs and service tax paid on all input services which they have used, whether or not the same has been reimbursed separately by the buyer. As long as there is a transaction value, the transaction value becomes the assessable value under section 4 of the Central Excise Act, 1944. If there is some additional consideration for sale, then such additional consideration also has to be included to the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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