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2012 (12) TMI 471 - AT - Central ExciseAssessable value - Place of removal – company owned company outlets (hereinafter referred as COCOs) - Oil companies were receiving Petroleum products from various refineries located at different places in India, under bond without payment of duty at their "terminal points" and storing at the Terminal Points without payment of duty. They were clearing the products on payment of duty from the said place. – Held that:- There is no basis to consider the COCO outlets as the "place of removal". It is not the case of the department that the petroleum products were received in COCO outlets without payment of duty and sold from the said COCO outlets only on payment of duty. Therefore, there is no justification to treat the COCO outlets as the "place of removal" - "place of removal" is the factory gate and the sale has taken place at the factory gate and the delivery charges are in the nature of transportation charges for transporting the petroleum products through pipeline. The sale prices from the terminal points to the dealers were based on APM prior to 01.04.2002 (that is as determined by a different authority and adopted by the oil marketing companies) and from 01.04.2002 the same have been determined by the oil marketing companies themselves. For valuation purposes, it is immaterial as to whether the transaction value was based on APM or self-determined by OCM. Since in respect of transfers to COCO outlets, the price applicable to dealers at the "place of removal" (that is terminal points) has been adopted, the same is legal and proper.
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