TMI Blog2014 (12) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... e’s case that excess freight recovered by M/s. Dhampur Alco Chem Ltd. was being transferred to M/s. Dhampur Sugar Mills Ltd. We also note that two appellants are public limited companies and as such, are independent legal entities in the eyes of law. They do not have any common Directors and are operating independently in their own fields. As such, any amount collected in excess by M/s. Dhampur Alco Chem Ltd. in the name of freight cannot be held to be a part of assessable value of the chemicals being manufactured and cleared by M/s. Dhampur Sugar Mills Ltd. - excess charges are not being collected by the manufacturer himself but as per the admitted position, the same are being collected by M/s. Dhampur Alco Chem Ltd. and there being no evi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y under the agreement dated 24-12-1991. In terms of the said agreement, the M/s. Dhampur Alco Chem Ltd. were responsible for procuring orders from the prospective customers for sale of the said goods, transportation and handing of said goods from Dhampur to the premises of customers and collection of payment from the Customers against sale of said goods. In terms of said agreement, M/s. Dhampur Alco Chem Ltd. were procuring orders, which were being transferred to sugar factory who were clearing the goods directly to the customers from their factory gate. The duty was being paid on the value so determined between M/s. Dhampur Sugar Mills Ltd. and their customers. Transportation of the said goods was being arranged by M/s. Dhampur Alco Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliance on the letters written by M/s. Dhampur Alco Chem Ltd. to their customers showing that they have a manufacturing unit at Dhampur from where they are receiving instant invoices and the amount of freight handling supervision and overhead charges are released through debit notes raised by M/s. Dhampur Alco Chem Ltd., in our view has got nothing to do with the disputed issue in question. Similarly whereas in the agreement entered between the M/s. Dhampur Alco Chem Ltd. are named as consignment agent but the condition of agreement clearly show that they were only procuring orders and were undertaking the transportation on behalf of the customers. It stand explained to us that the goods were being cleared directly from the factory of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then the same would not form part of the assessable value of the excisable goods cleared by them unless there is an evidence to show that value of the goods was being collected under the garb of freight charges. Reference in this regard can be made to Hon ble Supreme Court decision in the case of Baroda Electric Meter Ltd. v. Collector [1997 (94) E.L.T. 13 (S.C.)]. In the present case, we find that such excess charges are not being collected by the manufacturer himself but as per the admitted position, the same are being collected by M/s. Dhampur Alco Chem Ltd. and there being no evidence of further movement of the said excess collection to M/s. Dhampur Sugar Mills Ltd., we find no merits in the Revenue s stand. Accordingly, the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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