2003 (6) TMI 148

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..... ember (T)]. - M/s. HPL Chemicals Ltd. (appellant) manufactures Hydrazine. While selling the Hydrazine, in addition to the price, the appellant charges transit insurance @ 0.4% of the value of the goods from all buyers. Central Excise investigation showed that the actual cost of insurance, by way of insurance premium, worked out to only 0.242%. Accordingly, proceedings were initiated to treat the d .....

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..... ement of the appellant's General Manager Shri S.S. Chowla to the effect that the excess amount collected went towards insurance of raw materials, manufactured goods in stock, etc. The appellants have produced insurance policy for the relevant period and have submitted that this statement was not factually correct at all inasmuch as the insurance policy taken by the appellant covered only transport .....

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..... ctually paid is not required to be treated as part of the value of the goods and subjected to duty. What is true of equalised freight is true of equalised insurance also. The appellants are therefore, right in their submission that the impugned orders are contrary to settled law. 4. In view of what has been stated above, the impugned orders are set aside and appeals are allowed with consequential .....

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