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1988 (3) TMI 63 - SC - Central ExciseWhether the sales pattern of the respondents that the distributors were 'related persons' as per Section 4 of the Act and the price at which the distributors sold the goods should, therefore, be the assessable value? Held that:- Where the sale in the course of wholesale trade is effected by the assessee through its sales organisation at a place or places outside the factory gate, the expenses incurred by the assessee upto the date of delivery under the aforesaid heads cannot, on the same grounds, be deducted. The assessee will be entitled to a deduction on account of the cost of transportation of the. excisable article from the factory gate to the place or places where it is sold. The cost of transportation will include the cost of insurance on the freight for transportation of the goods from the factory gate to the place or places of delivery.The new Section 4(4)(d)(i) has made express provision for including the cost of packing in the determination of "value" for the purpose of excise duty. Tribunal's upholding the order of the Appellate Collector, was right and correct.
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