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TMI Blog2020 (10) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... not in dispute; the appellants are the manufacturers of 'Caps and Closures of bottles'. They are registered with the Central Excise Department under CER No. AAACE5382NEM004. They are clearing the goods manufactured by them against purchase orders placed by their customers with certain terms and conditions attached thereto. The records of the appellants pertaining to the period from 2012-13 to 2014-15 were verified by the Central Excise Revenue Audit during 23.02.2016 to 29.02.2016 wherein it was noticed that they are collecting freight charges from customers apart from the cost of goods sold. The purchase orders of such customers stipulated that seller shall deliver the goods to the place designated in the purchase order at his own expense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace of removal is the factory gate when the goods are delivered at the buyer's premises; Section 4(3)(d) of the Central Excise Act, 1944 does not provide for inclusion of transportation charges in the transaction value and Rule 5 of Central Excise Valuation Rules, 2000 excludes the cost of transportation from the place of removal up to the place of delivery; that even CBEC Circular No. 988/12/2014-CX dated 20.10.2014 has vide paragraph 6 clarified that the place of removal is required to be ascertained in terms of provisions of Central Excise Act, 1944 read with the provisions of Sale of Goods Act, 1930, etc. 5. Today, when the matter was taken up for final hearing Shri Venkat Prasad, CA, appeared on behalf of the appellant and Shri N. Bha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was held that the buyer's premises can never ever be a place of removal. Although the case pertained to the period before the amendment of Section 4 as above, the Hon'ble Apex Court has discussed the issue both prior to its amendment and after it, in para 16 of its judgment as discussed above. It has been held that if the intention was to cover the expenses up to the place where the goods have been sold, the Section would have said so but the expression is "goods are to be sold". Therefore, the place of removal is before the goods are sold, not when the goods have been sold. Further, there is no removal of the goods at the buyer's premises because the place of removal requires the goods to be removed from that place. Thirdly, the descri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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