2002 (12) TMI 132

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..... manufactured by the appellants are sold to various buyers pursuant to tenders or pursuant to specific purchase orders placed by the buyers in question. While in the case of tenders the price quoted is an all-inclusive price (including transportation) in other cases, the transportation charges are separately collected from the buyers. The sales are all ex-factory sales and the sales are completed at the factory gate after the representative of the buyer inspects the goods and gives clearance for dispatch of the same. The goods are thereafter despatched to the buyer under cover of documents, which show the appellant as consignor and buyer as consignee. Once the goods are delivered to the transporter for onward carriage to the buyer, the appe .....

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..... mises since the transaction of sale, payment of price and handing over possession of the goods to the carrier after clearance is at the factory at Ballabgarh. 11. In one of the cases referred to and reported in 1983 E.L.T. 1896 (SC) Union of India and Others etc. v. Bombay Tyres International Ltd. etc, etc., the question involved was regarding deduction of transportation charges along with cost of insurance. It was held as follows : "Therefore, the expenses incurred on account of the several factors which have contributed to its value up to the date of sale, which apparently would be the date of delivery, are liable to be included. Consequently, where the sale is effected at the factory gate, expenses incurred by the assessee up to the .....

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..... ce of removal was not the premises of the buyer. In view of the provisions of Section 23 and Section 39 of the Sale of Goods Act, 1930, it was found that goods to be treated as delivered to buyer and property and possession of the goods passed on to buyer when the goods were handed over to transporter. In such a case element of freight and transit insurance were not to be included in the normal value of the goods. We approve of the view taken by the CEGAT. 12. In view of the discussion held above in our view the Commissioner of Central Excise and the CEGAT erred in drawing an inference that the ownership in the property continued to be retained by the assessee till it was delivered to the buyer for the reason that the assessee had arrange .....

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