TMI Blog2006 (4) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... ches to the regional plants of Kerala Milk Marketing Federation (MILMA) units located at various places Thripunithara, Kottayam, Allepey, Trivandrum, Kozhikode, Kannur, etc. at a contracted price for delivery at the plants. They transported the goods from their factory to the dairy units in their own vehicles or in the vehicles hired for the purpose. Since the quantities ordered are not uniform and also the units are located at different directions, it was not possible to arrive at normal and per unit cost of the product. The appellants claimed abatement of cost of the transportation on an averaged basis. It worked out at Rs. 1.80 per Kg. The above abatement was allowed by the Department in terms of the Apex Court decision in the case of Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and that they are less than actuals. Under such circumstances, the position should have been looked into in details without brushing aside the same in a casual manner. (iii) The appellants had produced Chartered Accountant s certificate to the effect that they had incurred Rs. 1.82 per Kg as against the claim of Rs. 1.80. Thus it is established that what was claimed is less than the actual claim. (iv) The Board s Circular No. 59/01/2003-CX., dated 3-3-2003 has clarified that when the sale has been effected at the factory gate, then freight and insurance charges are not required to be added in the assessable value. (v) In the absence of any allegation or findings that the average cost of transportation claimed has exceeded the actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessable value section 4 - Rule 5 of CE Valuation Rules freight - equalized freight - goods sold at factory gate as well as from depot - equalized freight shown separately in invoices - in case of both types of sales freight and insurance charges, whether equalized or actual not to be added even after 1-7-2000. Appeal allowed. (e) Apollo Tyres Ltd. 2003 (160) E.L.T. 836 = [2003 (57) RLT 163] Assessable value - section 4 - equalized freight - difference between actual freight incurred and equalized freight not to be added. (f) Jindal Vijayanagar Steel [2004 (172) E.L.T. 331] Transportation cost - documentary evidence indicate sale effected at factory gate - subsequent charges for tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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