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TMI Blog2004 (7) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... ds in trucks are, in fact, loading charges. He claimed that since these are hire charges, these are not includible in the assessable value of the goods. He referred to Page 58 of the paper book wherein a letter dated 25-1-2001 was written by the appellants to the Asstt. Commissioner of the Central Excise, Davangere, intimating that the amounts collected by the appellants from the transporters are towards the charges for use of their machinery in the loading area. These machines are used by the transporters for loading of the goods in the lorries instead of engaging manual labour. Loading of material is the responsibility of the transporter as their freight charges includes loading of material. The assessable value of the excisable goods sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2003 (153) E.L.T. 481 (S.C.)] and pleaded that the allegations contained in show cause notice proceed on the basis as if the valuation of the goods ought to be under clause (b) of Section 4(1) of Central Excise Act, 1944 ignoring the provision of clause (a) of sub-section (1) of Section 4. There being no valid foundation for ignoring the price under Clause (a) of sub-section (1) of Section 4, the authority lacks jurisdiction to issue notice calling upon the assessee to show cause in the matter. 3. Shri L. Narasimha Murthy, learned SDR appearing for the Revenue pleaded that the very letter placed at Page 58 of the paper book on which the appellants have relied in their defence clearly states that the amount collected by them from the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the Supreme Court in case of Bombay Tyre International - 1983 (14) E.L.T. 1896 (S.C.). The appellants have relied on the decision of the Tribunal in case of Aglowmed Pvt. Ltd. v. CCE - 2000 (120) E.L.T. 749 (T). We found that this decision is for loading the goods from factory and subsequent transport. In the present case the goods are loaded inside the factory. All handling charges incurred inside the factory enrich the value of goods and these are required to be added in the assessable value of goods in view of the decision of the Supreme Court in case of Bombay Tyre International (supra). The decision of the Tribunal in case of Aglowmed Pvt Ltd. v. CCE (supra) is based on the Supreme Court decision in case of Union of India v. MRF - 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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