2023 (6) TMI 100

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..... and paid lesser freight to the transporters. They had included only the lesser freight in the assessable value while discharging the excise duty on finished products. The Department was of the view that the appellant has to pay excise duty on the amount of freight charges collected from the customers and not on the lesser freight paid to the transporters. It was also noted that though the appellant had collected inspection charges from the customers under commercial invoices, they did not discharge Central Excise duty on such charges for the period from January 2010 - January 2011. Show Cause Notice dated 21.04.2011 was issued proposing to demand the duty of excise on freight collected for the period March 2009 - February 2011 and also the .....

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..... pellant in regard to freight charges. The Department is of the view that the said amount also has to be included in the assessable value for discharging Central Excise duty. 3. The appellant has actually paid lesser freight to the transporters than that has been shown in the invoices. Only the amount that has been paid as charges to the transporters needs to be included in the assessable value. Thus the appellant has correctly discharged the excise duty on freight charges. To support this contention the Ld. Consultant relied upon the decision of the Honorable Supreme Court in the case of Baroda Electric Meters Ltd. Vs Collector of Central Excise 1997 (94) ELT 13(SC). The decision in the case of Indian Oxygen Ltd. Vs Collector of Central Ex .....

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..... ufacturer to claim on the basis of actual evidence. It remanded the case to the Asstt. Collector to refix the assessable-value as directed. It is necessary to reiterate the principle upon which the assessable-value will have to be determined in this. The cost of transportation from factory at Visakhapatnam and the depot at Vijayawada cannot be included normally in computation of the value. The value has to be computed under Section 4(1)(a) read with Section 4(4)(d)(i) of the Act, where the wholesale price is ascertainable at the factory gate, the question of transportation charges becomes entirely irrelevant. The cost of transportation from the factory gate to the place of delivery and transit expenses were not to be added to the wholesale .....

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