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2003 (4) TMI 109 - SUPREME COURTWhether in cases where a manufacturer includes equalised freight in the price of the goods and sells the goods all over the country at a uniform price, the Department is entitled to compute value by including the cost of transportation from the factory to the depot? Held that:- Section 4 has to be read as a whole. If the place of removal was the factory, then the price would be normal price at the factory. If place of removal was some other place like a depot or the premises of a consignment agent and the price was different then that different price would be the price. It is because newly added Section 4(ia) was now providing for different prices at different places of removal that the definition of the term "place of Removal" had to be enlarged. Thus the amendment was not negativing the judgments of this Court. If that had been the intention it would have been specifically provided that even where price was the same/uniform all over the country, the cost of transportation was to be added. Thus, in cases where the price remains uniform or constant all over the country, it does not follow that value for purpose of excise changes merely because the definition of the term "place of removal" is extended. The normal price remains the price at the time of delivery and at the place of removal. In cases of "equalised freight it remains the same as per the judgments of this Court set out in Union of India & Ors. Etc. Etc. v. Bombay Tyre International Limited Etc. [1983 (10) TMI 51 - SUPREME COURT OF INDIA, NEW DELHI] . It is because newly added Section 4(ia) was now providing for different prices at different places of removal that the definition of the term "place of Removal" had to be enlarged. Thus the amendment was not negativing the judgments of this Court. If that had been the intention it would have been specifically provided that even where price was the same/uniform all over the country, the cost of transportation was to be added.
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