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2023 (12) TMI 247 - AT - Central ExciseValuation - inclusion of excess freight collected from the dealers in the assessable value - HELD THAT:- In the present case, it is undisputed fact that the place of removal of excisable goods is a factory gate of the appellant. It is also found that in the case of ex-factory sale, the freight amount collected is not includible in the assessable value of the excisable goods. This issue is no more res-integra that the excess freight collected by the appellant from the buyer is merely a profit and no excise duty can be levied on such profit as held in the various decisions - the appellant has sold the vehicles to the dealers at the ex-factory price and the title is transferred to the buyer at the factory gate and the appellant made arrangement for the transportation of vehicles on the request of the dealers. Since, the title in the vehicles is transferred at the factory gate, all the risk of damage during the transportation is that of the dealer and therefore, the assessable value is the transaction value in terms of Section 4(1)(a) of the Act and the provisions of Section 4(1)(b) and Valuation Rules are not applicable. This issue has recently been considered by the coordinate bench of the Ahmedabad in the case of KASHYAP SWEETNERS LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE & ST, VAPI AND JITENDRA PANDEY VERSUS COMMISSIONER OF CENTRAL EXCISE & ST, VAPI [2023 (7) TMI 1111 - CESTAT AHMEDABAD], wherein the Tribunal has held excess amount of freight from the customer is profit on account of transportation and not part and parcel of the value of the goods therefore, same cannot be included in the assessable value. The impugned orders are not sustainable in law - Appeal allowed.
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