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2017 (9) TMI 1365 - AT - Central ExciseValuation - freight - includibility - case of Revenue is that assessee did not include additional amount realized from their customers under the garb of freight & insurance charges on sale of the excisable good to their customers as FOR destination sales, resulting in undervaluation of the said goods - Held that: - the department has proceeded on the basis that the contracts are on FOR basis. However, on examination of one of the appellants' contract available on record with Bhilai Steel Plant, it is found that the contract is on ex-works basis - as per the contract the transportation and insurance are billed by the supplier on the buyer. From the invoices, it is evident that the freight and transportation are separately indicated and excise duty is collected on the basic value excluding the freight and insurance. The matter is squarely covered by the judgement of Hon’ble Supreme Court in the case CCE, Aurangabad Vs. Roofit Industries [2015 (4) TMI 857 - SUPREME COURT], where it has been held that once the sale of the goods to the buyer is at the factory gate, the expenses which were incurred after removal of the goods from the factory gate are not to be included in the value of the goods for the purpose of excise duty. Demand set aside - appeal allowed - decided in favor of appellant.
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