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2014 (2) TMI 816 - AT - Central ExciseWaiver of predeposit of duty - Imposition of equal penalty u/s 11AC - Determination of assessable value of goods - Inclusion of freight value - Held that:- It is the claim of the Revenue that even though certain quantities of goods were sold on ex-works basis through railways but in fact, the same were delivered from the Branch Offices and hence, the railway freight charges incurred in transferring the goods from the factory to their Branch Offices, should be included in the value of such goods. On a preliminary analysis of the evidences adduced by both sides, prima-facie, we find that the customers take constructive delivery of the goods at their factory of the Applicant as is evident from the Internal Price Circular of the Applicant, which indicates two channels of sale; one from the factory gate and the other one from the stockyard of the Applicant. Prima-facie, thus the Applicant could able to show that besides stockyard sales, there were also ex-works sale, but in relation to ex-works sales, the freight charges were incurredinitially by the Applicant in transferring the goods from the factory to a place other than the factory, where from their customer take delivery of the goods, but the freight charges were ultimately borne by the customer, which was a condition of sale. Freight charges incurred on behalf of the buyers cannot be included in the assessable value of goods sold on Ex-works basis. In these circumstances, the Applicants are able to make out a prima-facie case for waiver of all dues adjudged, accordingly, pre-deposit of all dues adjudged is waived andits recovery stayed during pendency of the appeal - Stay granted.
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