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2013 (9) TMI 492 - AT - Central ExciseDuty Demand of Differential Value - inclusion of transit insurance charge - Suppression of Information - Consideration for sale - The appellant suppressed the information that he had recovered from the buyers as transmit insurance charge against transit insurance premium - Whether the price charged by the appellant from the buyer at the time of delivery at factory gate was the sole consideration for sale - The Department was of the view that the appellant should have included the amount of transit insurance charge recovered in excess of the actual insurance charge premium paid in the transaction value of the goods cleared in terms of Rule 6 of Central Excise Valuation Rules - Held that:- The price charged at the time of removal was not the sole consideration for transaction of sale - the adjudicating authority and the Commissioner (Appeals) were right in including the difference of transit insurance charged and the amount received by the appellant against transit insurance charge in sale price to work out transaction value for the purpose of excise duty. Relying upon Baroda Electric Meters Ltd. v. Collector of Central Excise [1997 (7) TMI 126 - SUPREME COURT OF INDIA] - Transaction on the face of it was highly unnatural and was against the norms of the trade practice - The only inference which can be drawn from such an abnormal transaction was that the price paid at the time of delivery was not the sole consideration for sale and the appellant with the aid of buyers had evaded excise duty by issuing invoices/bills showing lower transaction value and getting compensated by indirectly receiving the price in the guise of transit insurance charges - The adjudicating authority as well as appellate authority were right in including the difference of the transit insurance charged actually paid by the appellant and the amount received by the appellant against transit insurance charges in the transaction value for the purpose of assessing excise duty, as such the order cannot be faulted - Decided against assessee.
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