TMI Blog2012 (5) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... y. The excess amount of freight collected by the transporters from the customers are passed on to the respondent also not in dispute - duty of excise is a tax on the manufacture and not a tax on the profits made by a dealer on transportation - appellant admittedly sold their goods at the factory gate to the independent wholesale buyers and the Revenue has not been able to produce any evidence on record that apart from the consideration received by the appellant for the sale of such goods at the factory gate, any other consideration flowed back to them from the independent wholesale buyers. As such I hold that the 3% flow back is not liable for inclusion in the assessable value - Decided against Revenue. - E/434/2006 - A-367/KOL/2012 - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y setting aside the order of the adjudicating authority. Hence the Revenue is in appeal. 3. The ld. Advocate appearing for the respondents has submitted that the condition of sale is ex-factory. In support of which he has produced copies of invoices of the relevant period. Further he has submitted that by an agreement with the transporters, they received a discount of 3% of the total freight charges incurred for transporting the goods from their factory to their customers from the said transporters. He has submitted that this excess amount of freight collected cannot form part of the assessable value of the finished goods. In support of the said submission he has referred to the judgments of the Hon ble Supreme Court in the case of Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods. 5. Heard both sides and perused the record. Undisputedly the respondents are collecting/receiving 3% of the total freight turnover or the service rendered by the transporters to the buyers of respondents in transporting their finished goods from the factory till the premises of the buyers. Also, it is not in dispute that the condition of sale reflected in the respective invoices is ex-factory. The excess amount of freight collected by the transporters from the customers are passed on to the respondent also not in dispute. The issue of inclusion of excess freight is no more res integra. The Hon ble Supreme Court in the case of Baroda Electric Meters Ltd. (supra) has held that duty of excise is a tax on the manufacture and not a tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cost of transportation from the factory gate to the place of delivery and transport expenses cannot be added to wholesale price at factory gate because the duty of excise is a tax on manufacture and not on the profits made on transportation charges. The ratio of the judgment has been followed in the case of Baroda Electric Metres Ltd. reported in 1997 (94) E.L.T. 13 and in the case of Escorts JCB Ltd. reported in 2002 (146) E.L.T. 31. The lower authority has distinguished these decisions from the facts of the present case on the ground that freight and insurance charges is not the issue of debate in the subject case. While the transportation charges has been held as non-includible in the assessable value in the above cited orders, over ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
