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TRANSPORTATION CHARGES

Central Excise - By: - Mr. M. GOVINDARAJAN - Dated:- 9-5-2015 - Rule of the Central Excise Valuation (Determination of price of excisable goods) Rules, 2000 ( Rules for short) provides that the value of the excisable goods shall be based on the value of such goods sold by the assessee for delivery at any other time nearest to the time of the removal of goods under assessment, subject, if necessary, to such adjustment on account of the difference in the dates of delivery of such goods and of the .....

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o the place of delivery of such excisable goods. The explanation 1 to this Rule provides that the cost of transportation includes the actual cost of transportation and in case where freight is averaged the cost of transportation calculated in accordance with generally accepted principles of costing. The explanation 2 to this rule provides that the cost of transportation from the factory to the place of removal, where the factory is not the place of removal shall not be excluded for the purposes .....

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ods under the Central Excise Valuation (Determination of price of excisable goods) Rules, 2000 ( Rules for short). The assessee was engaged in clearance of their final product directly to the customers at the factory gate as well as stock transfer to their various depots. The Tribunal in this case held that while allowing the appeal of the assessee, the Tribunal has arrived at a conclusion that the cost of transport from the place of removal to the place of delivery i.e., from the factory gate t .....

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eld that it is not disclosed in written submission that the said importation cost disintegrated in contract between manufacturer and job worker. The is includible in assessable value unless the evidence is produced of said disintegration. In Commissioner of Central Excise, Belapur V. Sharp Batteries & Allies) Industries Limited - 2015 (2) TMI 878 - CESTAT MUMBAI the Tribunal held that as the goods have been cleared to the customers from their godown by the assessee, therefore, whatever being .....

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nd charged them shown in the invoices in excess of actual paid to the transporters. The department was of the view that since the appellant has charged extra from the customer in view of Rule 5 the appellant is liable to pay excise duty on excess transportation charge. Show cause notices were issued to the appellant. The Adjudicating Authority confirmed the demands. The Tribunal found that it is not disputed that the appellants had sold the goods in question at the factory gate. He was asked by .....

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oods charged at factory gate. The Tribunal further held that merely because the appellant has made profit on transportation from the place of removal to the place of delivery it cannot be said that the aforesaid profit has any co-relation with the goods cleared to factory gate as such he cannot be asked to pay excise duty on the freight. In Nirmal transports V. Commissioner of Central Excise, Pune - II - 2011 (1) TMI 758 - CESTAT, MUMBAI the Tribunal held that the central excise duty is payable .....

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of removal If the factory gate is the place of removal, all the clearances through M/s Nirmal warehouse are the removal of goods clandestinely, as no invoice is issued or if the godown of the Nirmal warehouse is the place of remova, then the are includible in the assessable value. In this case the Commissioner has held that the place of removal is Nirmal Warehouse. The transportation charge up to the Nirmal Warehouse is to be includible in transaction value. The Tribunal upheld the findings of t .....

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ctroi are paid by the appellant and the amount which is indicated in the show cause notice is the amount which has been deduced form the records maintained in the appellant s premises. The Tribunal held that in the absence of any evidence which indicates the specific amounts as have been paid by the appellant, the entire fulcrum of the show cause notice is displaced and any order confirming the demand raised in such show cause notice has to go. In Eveready Industries India Limited V. Commissione .....

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sales were on FOB destination basis, the transaction value include the value of freight and that the freight charges were not separately collected from the buyers and further that the amount of paid by the appellant were disclosed in its books of account under the head of expenditure. The Tribunal held that neither the primary or appellate authority adverted to any evidence whatsoever documentary or oral on the basis of which the primary authority perversely affirmed that the appellant was requi .....

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