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2016 (2) TMI 145 - AT - Central ExciseExcess amount towards freight charges recovered from the buyers than the amount actually incurred - demand central excise duty - assessable value subjected to levy - whether freight is not part of the assessable value when the sales are effected at the factory gate? - Held that:- There is no allegation to the effect that the price mentioned in the purchase orders are not true transaction value and certain extra consideration is received towards the sale of such excisable goods. Certain amount is specifically agreed upon by the appellant and the buyer towards freight for transportation of the goods to the buyer’s premises. The variation in actual cost of transportation has no relevance so as to effect the ex factory transaction value. The Hon'ble Supreme Court in the case of Indian Oxygen Ltd. (1988 (7) TMI 58 - SUPREME COURT OF INDIA ) held that if the ex factory is ascertainable, the cost of transportation or transit expenses were not to be considered as they have nothing to do with the manufacture of goods. When the price at factory gate is available, any extra amount collected in transportation charges cannot be considered for addition. In the case of Filament India Vs. CCE, Jaipur reported in (2003 (6) TMI 110 - CESTAT, NEW DELHI ), the Tribunal held that when the sale and delivery take place at the factory gate and freight charges, which are in relation to an independent transaction is mentioned separately in the invoices, the amount of freight has no relevance for valuation purposes. Considering the above discussion, we find that there is no justification for any addition to the ex factory transaction value in the present case. We accordingly set aside the impugned order and allow the appeal with consequential relief, if any. - Decided in favour of assessee
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