Central Excise Valuation – Whether amount collected separately for transportation, loading – unloading and testing are includible?

In SOUTHERN POWER EQUIP. CO. PVT. LTD reported in 2007 -TMI - 1610 - CESTAT, BANGALORE, the assessee was alleged to undervalue the goods by not including the charges collected towards transportation, loading - unloading and testing in the value of finished goods at the time of clearance from the factory.

After verifying the facts, CESTAT has held that, from the invoices also, it can be seen that there is separate price shown for manufacture and transportation; separate charge shown for loading, unloading and testing and also separate charges shown for erection. Therefore, these charges are bereft of any evidence. Hence, these elements were not to be added to the basic price, as the basic price is part of the contract.