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2014 (12) TMI 237 - AT - Central ExciseValuation of goods - Revenue entertained a view that inasmuch as the freight expenses retained by M/s. Dhampur Alco Chem Ltd. were more than the freight expenses incurred by them, the differential amount has to be treated as part of the assessable value of the goods cleared by sugar factory from their factory premises directly to the customers - Held that:- Revenue has not produced any tangible evidence on record to show that the value of chemicals sold by M/s. Dhampur Sugar Mills Ltd. were being collected by M/s. Dhampur Alco Chem Ltd. under the guise of freight charges. It is also not the Revenue’s case that excess freight recovered by M/s. Dhampur Alco Chem Ltd. was being transferred to M/s. Dhampur Sugar Mills Ltd. We also note that two appellants are public limited companies and as such, are independent legal entities in the eyes of law. They do not have any common Directors and are operating independently in their own fields. As such, any amount collected in excess by M/s. Dhampur Alco Chem Ltd. in the name of freight cannot be held to be a part of assessable value of the chemicals being manufactured and cleared by M/s. Dhampur Sugar Mills Ltd. - excess charges are not being collected by the manufacturer himself but as per the admitted position, the same are being collected by M/s. Dhampur Alco Chem Ltd. and there being no evidence of further movement of the said excess collection to M/s. Dhampur Sugar Mills Ltd., we find no merits in the Revenue’s stand. Accordingly, the impugned orders are set aside - Decided in favour of assessee.
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