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TMI Blog2025 (3) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, it is also an admitted fact that as per purchase order, the delivery was "free at destination". Therefore, even though they might be recovering these freight and insurance charges separately by way of reimbursement at a later date, it would not affect the terms of the purchase order which is apparent from plain reading of the purchase order. Further, merely because they have paid the VAT on ex-works value that in itself cannot become the basis for payment of central excise duty on the ex-works value. Therefore, in this case, as apparent from the terms and conditions and various submissions made, sale is on FOR basis. Much emphasis has been laid on the judgment of Hon'ble Supreme Court in the case of Ispat Industries [2015 (10) TMI 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TOTAL 8, 57, 75, 093 2. The issues involved in all these appeals are identical and the demands are for different period starting from April 2011 to June 2017. The issue involved in all these appeals being identical, all these appeals are being taken up together for disposal. 3. The issue, in brief, is that they are supplying certain equipments like electric transformers etc., to different customers including State Electricity Boards in terms of tenders floated by State Electricity Boards wherein, they are required to quote the price Ex-works/Ex-factory and are also required to show freight and insurance charges separately in the invoices. 4. Admittedly, the excise duty has been discharged on the price ex-works without including the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal for earlier period has already allowed their appeal by holding that freight and insurance charges cannot be included in the assessable value for the purpose of charging excise duty, mainly relying on the judgment of Ispat Industries Ltd., M/s Vijai Electricals Vs CCE & CST, Hyderabad - I [2019 (11) TMI 301 (CESTATHYD)] and M/s Vijai Electricals Vs CCE & CST, Hyderabad - I [2020 (7) TMI 318 (CESTAT-HYD)]. He further clarifies that M/s Vijai Electicals has been taken over by M/s Toshiba Transmission and Distributions System India Pvt Ltd. 6. On the other hand, Learned AR for the Department submits that the case laws cited by the appellant in their favour, especially the orders of this Bench itself, are not of much help in as much as thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07 (CESTAT-Chennai)] v) M/s Rane Brake Lining Ltd., Vs Commissioner of GST & Central Excise, Puducherry [ 2024 (10) TMI 143 (CESTAT-Chennai)] vi) J & K Pigments Pvt Ltd., Vs CCE, Jammu & Kashmir [2024 (5) TMI 989 (CESTAT-Chandigarh-LB)] vii) Pr. Commissioner of CGST, Raipur Vs M/s Unique Structures & Towers Ltd, [2019 (9) TMI 1007 (CESTAT-New Delhi) Therefore, his main thrust of the argument is that since the sale is on FOR basis, the freight and insurance charges are includable in the assessable value as the place of removal in this case would be at the destination i.e. exstore of the buyer. 7. He further submits that the case law of Ispat Industries Ltd., as relied upon by the Learned Advocate for the appellant, is not applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value that in itself cannot become the basis for payment of central excise duty on the ex-works value. Therefore, we hold that in this case, as apparent from the terms and conditions and various submissions made, sale is on FOR basis. 10. Much emphasis has been laid on the judgment of Hon'ble Supreme Court in the case of Ispat Industries. We find that, in this case, the Hon'ble Court was dealing with a situation where the sale was ex-works and the issue was not concerning to FOR sale. Therefore, that case is distinguished on facts. We further find that in terms of relied upon judgments, the place of removal can even be the place of the customer in the case of FOR sale, even though, this judgment is in the context of eligibility or otherwi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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