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2012 (5) TMI 527 - CESTAT, KOLKATAValuation of goods - Demand of differential duty - Receipt of 3% gross freight charges from their transporters which is in excess of the freight incurred in transferring the finished goods from their factory to their customers’ premises - Held that:- Undisputedly the respondents are collecting/receiving 3% of the total freight turnover or the service rendered by the transporters to the buyers of respondents in transporting their finished goods from the factory till the premises of the buyers. Also, it is not in dispute that the condition of sale reflected in the respective invoices is ex-factory. The excess amount of freight collected by the transporters from the customers are passed on to the respondent also not in dispute - duty of excise is a tax on the manufacture and not a tax on the profits made by a dealer on transportation - appellant admittedly sold their goods at the factory gate to the independent wholesale buyers and the Revenue has not been able to produce any evidence on record that apart from the consideration received by the appellant for the sale of such goods at the factory gate, any other consideration flowed back to them from the independent wholesale buyers. As such I hold that the 3% flow back is not liable for inclusion in the assessable value - Decided against Revenue.
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