2011 (2) TMI 1058

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..... .Kaycee Industries Ltd., Mumbai-78 are the manufacturer of excisable goods  falling under Chapter 84, 85, 90 & 91 of the Schedule to Central Excise Tariff Act, 1985. The assesses were recovering freight and transit insurance charges from their customers but  at the time of they were not including the said charges in the assessable value determined under Section 4 of the Central Excise Act, 1944. The case of the department is that in certain cases, the goods manufactured and sold by the assessee were insured by them from the factory gate of the destination and in such cases both the freight and insurance  charges, as mentioned in the purchase order were recovered by the assessee from their customers. The legal letter of owners .....

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..... ion  11AC of Central Excise Act, 1944 along with interest at the appropriate rate on the duty adjudged by the order dated 11/04/2003. 4. The party  preferred an appeal before the Commissioner (Appeals) and the Commissioner (Appeals) vide impugned order set aside the order of the lower adjudicating authority and allowed the appeal filed by the party.  The Commissioner  (Appeals) inter-alia  observed that the terms of sale were 'ex-works' as evidenced from the purchase order and this was completely ignored by the lower adjudicating authority. Merely because the assessee had arranged the transport and had taken out a transit insurance policy, it cannot be concluded that the transfer of title on the goods sold was ta .....

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..... e buyer's representative or from the  time  the goods leave the assessee's premises, the 'place of removal' remains the factory premises, since the transaction of sale, payment of the price and delivery of goods  to the carriers occurred at factory premises. The Hon'ble apex Court further held that the ownership of goods have no relevance in so far as transit insurance of goods is concerned and the  delivery to the carrier at factory gate is  delivery  to the buyer and element of freight and transit insurance is not includable in the assessable value. The ratio of the above judgement applies squarely to the facts of the case. 8. Accordingly, we do not find any merit in the appeal and  dismiss the same w .....

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