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2019 (10) TMI 43 - ALLAHABAD HIGH COURTValuation - inclusion of expenditure in the value - Whether in absence of any payment being made by the assessee to any person for transportation of coal, there could arise any rejection of the value of goods disclosed by the assessee or of addition on that account? HELD THAT:- The main part of the sub-section (h) of Section 2 of the Act reveals, only charges relating to transportation may be included in the value of goods. For a charge contemplated under Section 2(h) of the Act to arise, it must be in the nature of payment made by one person to another. It would be self-contradicted to accept that a person had charge himself for transportation done by him, of his own goods. Undisputedly, the sale of coal was completed at the collieries. Also, it is undisputed that the assessee transported the entire quantities of coal purchased by it from the collieries to its power plant through its railway line using railway wagons and rail engine owned by it - Therefore, there would never arise any charge for transportation paid by the assessee. What the assessee incurred was expense on own account. It could never be treated as a charge for transportation. Then, in absence of any legal fiction created by the Act to put a simple expenditure incurred on own account on the footing of a charge paid to another, that expense cannot be included in the value of goods. A perusal of the order of the Tribunal does not bring out any finding to the effect that the documents provided in support of the purchase price of coal were not worthy of credence. In absence of the pre-condition to invoke the explanation, the finding of the Tribunal is wholly erroneous and based on consideration extraneous in law - the direction of remand is unfounded and extraneous. The question of law is answered in negative, i.e. in favor of the assessee and the against the revenue - Revision allowed.
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