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2017 (8) TMI 585 - CESTAT CHENNAIValuation - includibility - freight charges - loading charges - stock transfer - whether the transportation charges from the factory to depot/consignment agent premises and the cost of unloading charges at the depot are to be included in the assessable value? - Rule 7 of Central Excise Valuation Rules, 2000 - Held that: - The new section 4 (Transaction Value) was introduced with effect from 01.07.2000 which defined the ‘place of removal' as factory gate alone. Later, with effect from 14.05.2003 the definition of place of removal was restored to include depot as well as consignment agent premises. That for the period 01.07.2000 to 14.05.2003, as per law the place of removal is only factory gate and when goods are sold at place other than factory gate Rule 5 of Central Excise Rules, 2000 would apply. This Rule provides for deduction of freight and other charges from assessable value - from 01.07.2000 excise duty is to be paid on transaction value and, therefore, valuation under Section 4(1)(a) and depot not being place of removal is to be adopted and transportation charges need not be included. Reliance placed in the case of Indian Oil Corporation [2015 (3) TMI 1158 - CESTAT MUMBAI], where it was held that the transportation charges/unloading charges are includable in the assessable value. Extended period of limitation - Held that: - it is abundantly clear that there was much confusion regarding the issue whether transportation charges are to be included or not. The same was set right by the amendment brought to the definition of 'place of removal' with effect from 14.05.2003 - the appellants cannot be said to be guilty of suppression of facts with intent to evade payment of duty - appellants succeed on the issue of limitation. The demand beyond the normal period is set aside on the ground of being time-barred - appeal allowed - decided partly in favor of appellant.
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