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TMI Blog2023 (6) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the assessable value for discharging excise duty. The issue as to whether the amount that has been collected as surplus and is a profit in the hands of the appellant is required to be added to assessable value was considered by the Honorable Apex Court in the case of Indian Oxygen Ltd. [ 1988 (7) TMI 58 - SUPREME COURT ] where it was held that It is clear from Section 4 that the delivery and collection charges have nothing to do with the manufacture as they are for delivery of the filled cylinders and collection of the empty cylinders. These charges have to be excluded from the assessable-value. Insofar as the loading charges Incurred for loading the goods within the factory are concerned, they are to be included in the assessable va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty of excise on freight collected for the period March 2009 February 2011 and also the duty on inspection charges for the period January 2010 January 2011 along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and imposed penalty. Against such order, the appellant had filed appeal before the Commissioner (Appeals) who vide order impugned herein set aside the demand on inspection charges. However, the Commissioner (appeals) confirmed the demand in respect of freight charges. Aggrieved, the appellant is now before the Tribunal. 2. The learned consultant Shri P.C. Anand appeared and argued for the appellant. It is submitted by him that, the appellant, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 997 (94) ELT 13(SC). The decision in the case of Indian Oxygen Ltd. Vs Collector of Central Excise dated 1988 (36) ELT 723 (SC) was relied to submit that the profit made on transportation charges need not be included in the assessable value since excise duty is not a tax on profits, but only on the actual value of the finished goods. 4. Learned Consultant prayed that the appeal may be allowed. 5. The learned AR Shri S. Bala Kumar submitted the findings in the impugned order. 6. Heard both sides. 7. The issue is whether the appellant has to include the surplus freight charges that have been collected from the customers in the assessable value for discharging the Central Excise Duty. Undisputedly, the freight charges which has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the factory gate to the place of delivery and transit expenses were not to be added to the wholesale price at factory gate for purposes of duty under the Act. In this case the price of the goods at the factory gate Visakhapatnam is known. It is clear from Section 4 that the delivery and collection charges have nothing to do with the manufacture as they are for delivery of the filled cylinders and collection of the empty cylinders. These charges have to be excluded from the assessable-value. Insofar as the loading charges Incurred for loading the goods within the factory are concerned, they are to be included in the assessable value, irrespective of who has paid for the same but the loading expenses incurred outside the factory gate are e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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