TMI Blog2012 (12) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... is factory of the assessee then transport charges will not be included in the assessable value – appeal dismissed - E/862/2006 - A/451/2012-EX(BR)(PB) - Dated:- 16-4-2012 - Justice Ajit Bharihoke, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri Nagesh Pathak, AR, for the Appellant. None, for the Respondent. [Order per : Justice Ajit Bharihoke, President]. This appeal is directed against the impugned order of Commissioner (Appeals), Customs and Central Excise, Chandigarh whereby he allowed the appeal of the assessee and set aside the order-in-original passed by the adjudicating authority confirming the central excise duty demand amounting to Rs. 6,81,428/- with interest and also imposed penalty of equal amount. 2. The res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the payment of freight charges, hence, it cannot be said to be a case of sale of goods at factory gate and actually the transaction amounts to sale on FOR basis. Thus, it is submitted that the case is covered under the provision of Section 4(1)(b) of the Central Excise Act, 1944 and as such the valuation for the purpose of excise duty ought to have been done in accordance with Rule 5 Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. It is further contended by the departmental representative that the Commissioner (Appeals) has erred in relying upon the case of M/s. Baroda Electric Meters Ltd. [1997 (94) E.L.T. 13 (S.C.)] and the case of Escorts JCB Ltd. [2002 (146) E.L.T. 31 (S.C.)] ignoring that those cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of such excisable goods shall be deemed to be the transaction value, excluding the cost of transportation from the place of removal upto the place of delivery of such excisable goods. Explanation 1. - Cost of transportation includes - (i) the actual cost of transportation; and (ii) in case where freight is averaged, the cost of transportation calculated in accordance with generally accepted principles of costing. Explanation 2. - For removal of doubts, it is clarified that the cost of transportation from the factory to the place of removal, where the factory is not the place of removal, shall not be excluded for the purposes of determining the value of the excisable goods.] 7. On bare reading of Section 4(1)(a) it is apparent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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