9911796707
TMI Blog2023 (7) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... the customers over and above the actual freight is liable to be added in the assessable value/ transaction value for the purpose of charging excise duty or otherwise. 2. Shri Mehul Jiwani, learned Chartered Accountant appearing on behalf of the appellant submits that firstly, the freight as a whole in not includable in the transaction value from the place of removal to place of delivery. In support, he placed reliance on the following judgments:- (a) M/S Ispat Industries Limited 2015 (324) E.L.T. 670 (S.C.) (b) GP Petroleums Limited 2019 (5) TMI 1018 CESTAT Ahmedabad (c) Emco Limited - 2016 (12) TMI 1385 - CESTAT Mumbai (d) Miraj Pipes & Fittings Pvt. Ltd. 2019 (7) TMI 1792 CESTAT New Delhi (e) Order No. A/10755/2022 Dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the subsequent cases. In this support, he placed reliance on the following cases:- (a) Surcoat Paints (P) Limited - 2008 (232) ELT. 4 (S.C.) (b) Suntrack Electronics (P) Limited - 2003 (156) E.L.T. 163 (S.C.) (c) Jayaswals Neco Limited - 2006 (195) E.LT. 142 (S.C.) (d) Birla Corporation Limited - 2005 (186) E.L.T. 266 (S.C.) 2.3 Without prejudice he further submits that there is not only cases of excess recovery of freight but there are cases where the appellant have paid excess freight and collected from the customer the lesser amount of freight as compared to the actual. He submitted a chart which is reproduced below:- Year Freight Excess payment to appellant considered in SCN. Freight short payment to appellant by the cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same would be a part of the assessable value. In our opinion, the Tribunal proceeded on an incorrect premise. It was clearly held in Indian Oxygen Ltd. v. Collector of Central Excise - 1988 (36) E.L.T. 723 (S.C.) = 1988 (Supp.) SCC 658, that the duty of excise is a tax on the manufacturer and not a tax on the profits made by a dealer on transportation. In view of that decision, the view taken by the Tribunal cannot be sustained. 2. Consequently, the appeals are allowed and the impugned judgment of the Tribunal is set aside." 5. As held in the above judgment by the apex court that excess amount of freight from the customer is profit on account of transportation and not part and parcel of the value of the goods therefore, same cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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