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2014 (6) TMI 341 - AT - Central ExciseValuation of goods - reimbursement of part of advertisement expenses - difference between transit insurance recovered from buyers and insurance paid - interest paid to financial institutions against bill discount - Turnover tax - Writing off calls for reversal of Cenvat credit of the entire amount - Cenvat credit on First-aid Kit - held that:- Relevancy of such cost to manufacture was not brought out by Revenue. Therefore, it is not possible to hold that such expenses shall be integral part of cost of manufacture. Accordingly the facts and circumstances of the case read with Para 4 of adjudication order clearly brings out that publicity and advertisement was borne by the dealer at his choice to promote sale that does not mean that assessable value shall be hiked by the extent of reimbursement of part of above expenditure. Cost which makes the goods movable from factory is to only form part of the assessable value of goods cleared. Therefore, excess if any remains after payment of transit insurance is beyond scope of Central Excise Act, 1944 to be included in assessable value which may be subject matter of Income-Tax. Wherever a seller finds working capital crunch, financing facility is extended by bankers to accommodate the seller to realise their price on presentation of the bill. Wherever the seller is able to realise sale price on spot such facility is not resorted to. Therefore, addition of interest paid on bill discounting shall result in anamoly and arbitrary taxation for which such expenditure needs to be excluded from assessable value. Adjudication finding does not show whether there was discrepancy between average tax incidence paid and actual tax liability payable was examined by the authorities below. So also the modus operandi followed by the appellant was not examined to find out the truth. Therefore, making finding by Tribunal at this stage is premature. Hence, this aspect is remanded to the learned Adjudicating Authority. - Decided in favour of assessee.
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