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2010 (1) TMI 440 - CESTAT, NEW DELHIValuation - Show cause notice was issued alleging that as per the contract of the buyers, the transportation cost involved was Rs. 15,41,000/- whereas the respondents have actually paid to the transporters only Rs. 12,25,600/-. As a result, the assessee has recovered Rs. 3,15,400/-, in excess from the buyers towards transportation cost which should be treated as part of the price of the “exempted product” namely, the rectified spirit. Accordingly, and amount of Rs. 25,252/- was sought to be demanded on the allegation that the party have contravened the provisions of Section 3 and Section 9(1)(b)of the Central Excise Act, 1944 read with Rule 8 of the Central Excise Rules, 2002. The original authority dropped the proceedings initiated under notice. The order of the original authority was reviewed by the Commissioner and appeal was filed before the Commissioner (Appeals). Commissioner (Appeals) upheld the order of the original authority thus rejecting the appeal of the Department. Held that - The ratio in determining the price by excluding the amount collected as freight as laid down in the judgment of the Hon’ble Supreme Court in the case of Baroda Electric Meter v. Collector 2008 -TMI - 44608 - SUPREME COURT OF INDIA is certainly, applicable to the facts of the present case. Therefore, there is no reason to interfere with the concurrent findings of the authorities below dropping the proceeding involving demand of Rs. 25,232/- in terms of show cause notice 23-9-05. The appeal is, therefore, rejected.
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