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2014 (4) TMI 604 - AT - Central ExciseValuation of goods - Inclusion of cost of transportation - Place of removal - whether the cost of transportation of the goods from the factory gate to the depots would be includible in the assessable value of the goods - Held that:- In terms of Section 4 (1), where under this Act, the excise duty is chargeable on any excisable goods with reference to their value, then, on each removal of the goods such value shall be, in a case where the goods are sold by the assessee for delivery at the time and place of removal, and the assessee and buyers of the goods are not related and price is the sale consideration for sale, be the transaction value. In any other case, where the goods are not sold at the time and place of removal, the value shall be determined in terms of provisions of Central Excise Valuation Rules, 2000. Thus, in terms of Section 4 (1), the assessable value of the goods is the transaction value at the time and place of removal. The place of removal during the period of dispute, as mentioned above, covered only the factory or any other place or premises of production or manufacture of the excisable goods or a warehouse or any place wherein the excisable goods have been permitted to be deposited without payment of duty and, as such, the place of removal did not include depot, premises of consignment agents or any other place or premises from where the goods after their clearance from the factory are to be sold. In view of this, when the goods during the period of dispute were sold after their clearance from the factory from depots, notwithstanding the provisions of Rule 7 of the Central Excise Valuation rules, the assessable value would be the transaction value at the time and place of removal and hence the same would not include the cost of transportation from the factory to Depots - Following decision of Ispat Industries vs. Union of India [2006 (9) TMI 181 - SUPREME COURT OF INDIA] - Decided against Revenue.
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