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TMI Blog2023 (4) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... wn separately in the invoices is nothing else but freight and handling charges. It is now a settled law as per the relied upon judgments by the Learned Counsel that any amount collected separately as freight in the invoices cannot be included in the assessable. It is held that amount charged as freight handling charges and separately shown in the invoices cannot be included in the assessable value u/s 4 of the Central Excise Act, 1944. Therefore being the same facts and issue involved in the present case also, the freight and handling charges shown separately in the invoice of the appellant is also not includable in the assessable value of the excisable goods, consequently, duty demand on the said elements is not sustainable. The im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same amount under Section 11AC of the Central Excise Act, 1944. Being aggrieved by the orders-in-original, the appellant filed appeals before the Commissioner (Appeals), who by the impugned order-in appeal No. 15 to 16/2013 (Ahd-II) CE/AK/Commr(A)/Ahd dated 31.01.2013 rejected the appeals and upheld the orders-in-original. Therefore, the appellants are before us. 02. Shri Sudhanshu Bissa, learned Counsel appearing for the appellant submits that amount was shown in the invoice as freight and handling and thus, it was clear that this recovery was not towards the value of the excisable goods manufactured by the appellant, but it was for freight and handling i.e. those activities which were arranged for and handled by the appellant tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same was recovered in guise of freight and handling charges. A perusal of the show cause notice indicates that Section 4 of the Act was referred to, paragraph 2.5 of part III of chapter III of CBEC manual was referred to and the recoveries shown in invoices and the records maintained by the appellant were considered while proposing to recover excise duty on this element. However no evidence was adduced by the audit officers or even by the Range and Divisional Officers while raising the above demand to show that the appellant had not provided any service like forwarding or packing or handling of the goods or transportation, and also no evidence was shown in the proceedings to suggest that the appellant had not recovered this amount towar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd handling charges in the invoices can be included in the assessable value u/s 4 of the Central Excise Act, 1944 or not. We find that Revenue s case has no merits as during the disputed period duty liability has been discharged by the appellant on the basis of transaction value. We have seen the specimen invoice copy produced by the learned Counsel and note that duty paying documents were indicating separately the value for the freight and handling charges. 4.1 It is the case of the department that price of the goods so recovered should include elements of freight and handling charges which cannot be considered as transportation/handling cost but it is additional consideration. In this regard this Bench is of the view that during transp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lace of removal remains the factory-gate and the cost of transportation from the place of removal to the place of delivery cannot be included in the assessable value even though the cost of transportation has been calculated on average basis and not on actual basis. The ratio of the said judgment apply squarely to the facts of the present case. 5.2 Similarly, this Tribunal in the case of Majestic Auto v. CCE cited supra, had held that the equalised cost of freight shown separately in the invoices cannot be included in the assessable value even after 1-7-2000 when the place of removal remains the factory-gate. 4.2 We also find that in the matter of Lamina Suspension Products Pvt. Ltd. Vs. Commissioner of C.Ex. Mangalore - 2018 (17) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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