TMI Blog2011 (2) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the place of removal has been shifted from the factory gate to the buyers premises. As decided in Escorts JCB Ltd. (2002 (10) TMI 96 - SUPREME COURT OF INDIA) if as per the terms and conditions of sale, the delivery is taking place at the factory gate and transit risk and insurance are to be borne by the buyers from the time the goods are handed over to the 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 ratio of the above judgement applies squarely to the facts of the case, appeal dismissed - E/3949/03 - - - Dated:- 22- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate but the premises of the buyer where the delivery took place and accordingly, the cost incurred on account of freight including transit insurance charges from the factory gate to such place of removal was includable in the assessable value. Accordingly, a show-cause notice was issued to the assessee demanding a duty of Rs.58,981/- for the period from April 99 to March 2003 under the provisions of Section 11A (i) of the Central Excise Act, 1944. The assessee contended that merely because they have an insurable interest in the goods even when the proprietary of the goods is passed on to the buyers, which had taken place at the factory gate as per the provisions of Sale of Goods Act,1930, they cannot be loaded with duty liability on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val has to be deemed to be the buyers premises, in view of the fact that delivery takes place at the buyer's premises and the assessee is collecting the freight and insurance charges from the buyers. Therefore, the cost of transportation as well as insurance charges incurred upto the point of sale needs to be included in the assessable value. 6. We have carefully considered the matter. 7. As rightly observed by the Commissioner (Appeals), the terms of sale were 'ex-works' i.e., ex-factory gate. Merely because the assessee has arranged for the transportation of the goods along with transit insurance it does not lead to the conclusion that the place of removal has been shifted from the factory gate to the buyers premises. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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