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2016 (2) TMI 640 - AT - Central ExciseDemand of central excise and equal amount of penalty confirmed - Held that:- The goods were supplied by the appellant against the Purchase Orders issued by the Electricity Board. The Purchase Orders clearly show the ex factory price, sales tax, freight and insurance charges separately. The appellant have entered into an agreement with the Transport Company providing for payment of compensation on account of loss and damage to the goods direct to the consignee. The only issue which may have to be looked into is whether the price of the goods is being collected in the guise of cost of transportation. On going through the case records, we find that no such case has been made out therefore the argument that the transporting company is a related person and consideration realised by the transporting company for transportation should form part of the assessable value and has no legal support. Section 4 of the Central Excise Act refers to “related person” only in the context of a sale to a related person. The Revenue has not been able to prove that the partnership firm of M/s Miracle Trading Co. is a proxy with no separate entity. Neither is any case made out that part of the price of the goods is being realised by the transporting company for the benefit of the Appellant company. Therefore in the facts of the case we do not see any merit in the orders of the lower authorities and we are in agreement with the argument of the Appellants that the proceeds realised by M/s Miracle Carrier and Trading Co. towards transportation of the goods will not form part of the assessable value of the goods cleared by Appellants.
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