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TMI Blog2009 (11) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... ssible to the respondents as rebate. On the basis of the reports of the jurisdictional Range Officer the part rebate claims representing the amount of duty paid on freight and insurance elements were rejected by the Adjuicating authority. 2.2 Being aggrieved with the orders of the adjudicating authority, the abovementioned party filed the appeal before Commissioner (Appeals), Jalandhar who allowed the appeal of the party. The Commissioner (Appeals) observed as under : (i) that in terms of Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004, the rebate is to be granted on whole of the duty paid on excisable goods and not on the duty payable. Therefore, it appears that there is force in the contention of the applicants. (ii) That in case of M/s. Rukmani Pakkwell Traders reported as 2004 (165) E.L.T. 481 (S.C.), it has been held by the Hon'ble Supreme Court that Exemption Notification have to be strictly construed - They must be interpreted in their own wording. The ratio of this judgment is squarely applicable in the instant case inasmuch as the notification clearly lays down that rebate is to be granted in respect of duty paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2000-CX., dated 3-2-2000 that AR 4 value is to be determined under Section 4 of Central Excise Act, 1944 and this value is relevant for the purposes of Rule 12 and Rule 13, Further, Section 4(1)(a) of Central Excise Act, 1944 stipulates that where excise duty is chargeable on any excisable goods with reference to value, then such value in a case, where goods are sold for delivery at the time and place of removal, shall be the transaction value. "Place of removal" under Section 4(3)(c) means place of production or manufacture of excisable goods or warehouse where goods are stored without payment of duty. Thus incase or removal of goods from the factory, transaction value excludes the cost of transportation from the place of removal up to the place of delivery of excisable goods. The same position holds goods for insurance charges also, as insurance expenses are part of the transportation charges. It, therefore, emerges from the above that value under Section 4 is the value for the purpose of rebate claim and expenses incurred on account of actual freight and insurance are not to be included in the value for the purpose of rebate claim in present cases. (ii) That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular cannot be treated as incorrect. 4.2 The Commissioner (Appeals) has rightly relied upon the decision of the Tribunal in the case of Bharat Chemicals v. CCE, Thane reported as 2004 (170) E.L.T. 568 wherein it has been held that the actual amount of duty paid to be returned as rebate and not the amount of duty payable. The reason for not accepting the decision of the Tribunal as given in the revision application is that the Department has not accepted the same and an appeal has been filed before the Bombay High Court and does not merit to sustain. Mere filing of the appeal against the decision of the Tribunal is no ground to take a divergent view unless and until it is reversed by higher appellate authority. The above view finds support from the following decisions of the following decisions of the Tribunal : (i) CCE, Coimbatore v. Chemplast Sanmar Ltd. - 2001 (132) E.L.T. 504 (ii) CCE, Chandigarh v. Supreme Fabrics P. Ltd. - 2002 (141) E.L.T. 753 (Tri.) The Commissioner has correctly allowed rebate claim of entire amount reading by interpreting the notification in strict sense as held by the Hon'ble Supreme Court inter al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Order-in-Original, and the impugned Order-in Appeal. The only question is to be decided in the instant Revision Application of Central Excise duty on the impugned goods? For the purpose of valuation of the excisable goods relevant Section is Section 4(1) of the Central Excise Act, 1944, which is extracted below :- Section 4 (valuation) Valuation of excisable goods for purpose of charging of duty of excise :- (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall- (a) in a case where the goods are sold by the assessee for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value; (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. 8.2 Transaction value is defined under Section 4(3)(d) of the Act which is extracted below : 4(3)(d). "transaction value " means the price actually paid or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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