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2019 (9) TMI 1007 - AT - Central ExciseValuation - place of removal different from factory gate - inclusion of Freight charges pertaining to transportation of goods to the said stores in the assessable value - period 2012-13 to 2016-17 - HELD THAT:- The factory gate or any other place as mentioned in Section 4 of CEA, 1944 from where the manufacturer sells its goods is the place of removal. Any transportation charges if paid for delivery of goods till the place of removal other than factory i.e. warehouse, depot or any other such place from where the excisable goods are actually sold, are to be included in the transaction value for the purposes of assessing the excise duty because till the property in goods is not passed on to the buyer any payment made by him shall be the payment made on behalf of the assessee and as per the definition of transaction value the said payment shall be includible. However, the delivery charges when paid by the buyer after the sale is completed and the property in the purchased goods has already vested in him, since the same is no more the payment by the buyer on behalf of assessee, the same cannot form the part of transaction value for the purposes of assessing excise duty. Since, in the present case the transportation charges have been paid for delivery of goods from the factory gate to a store at site but prior the sale of towers to MPPTP Ltd. which was subject to verification and approval of the buyer’s engineer and the payment/consideration was to be passed on thereafter only. The site store, in this place, is the case of removal and the value of transportation charges to the store at site has to be included in the transaction value. The Commissioner (Appeals) has committed an error while ignoring that the goods were not sold at the factory gate but at the ex-factory store at the buyer’s site. Thus factory here is not the place of removal but merely the place of clearance of goods. It was also ignored that the prices as agreed to be paid were not only including the charges of insurance risk but all such other charges and were agreed to be paid only after approval/ certification by engineers of buyer (MPPTC) - These facts are sufficient to hold that present is not the case of payment of sale consideration in future but is the case of sale in future subject to approval. Appeal allowed.
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