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2015 (8) TMI 392 - CESTAT ALLAHABAD

2015 (8) TMI 392 - CESTAT ALLAHABAD - TMI - Valuation of goods - whether cost of transportation from the palce of removal to the place of delivery is required to be added to the assessable value or not under Section 4 of the Central Excise Act, 1944 - Held that:- The ratio laid down by the Apex court in the case of CCE, Noida vs. Accurate Meters Ltd. (2009 (3) TMI 1 - SUPREME COURT) is squarely applicable to the present proceedings and it has to be held that transportation charges cannot be adde .....

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06 EX (DB) has been filed by the Revenue with respect to OIA No. 50-CE/ALLD/2006 dated 12/05/2006. Appeal No. E/2389/2006 EX (DB) is also filed by the Revenue with respect to OIA No. 65-CE/ALLD/2006 dated 29/05/2006. As the issue involved in both these proceedings is the same, therefore, both are being taken up for disposal under this common order. M/s Anand Transformers (P) Ltd. also filed Cross Objection No. 59/2007 with respect to appeal No. E/2388/2006 filed by the Revenue. 2. Shri R.K. Gupt .....

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turer. Shri S.P. Ojha, Consultant of M/s Anand Transformers (P) Ltd. and Shri R.C. Agrawal (CA) of M/s Kamla Transformers (P) Ltd. argued that sale of the finished goods is affected at the factory gate, therefore, removal of finished goods takes place at the time of clearance from the factory gate. That only point of delivery of the finished goods is the customers premises even if transportation and transit insurance are paid by the manufacturer. That as per Section 4 of the Central Excise Act, .....

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e issue involved in the present proceedings is whether cost of transportation from the palce of removal to the place of delivery is required to be added to the assessable value or not under Section 4 of the Central Excise Act, 1944. It is observed from the case records that respondent has entered into two separate contracts for sale of transformers and for transportation of transformers. In the case of CCE, Noida vs. Accurate Meters Ltd. (supra) where the product involved was electricity meters .....

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goods were not on actual basis. Respondent was bound to transport the goods from the factory gate to the place of the State Electricity Boards at the rates specified in the tender. Prior thereto, the State Electricity Board Authorities were to make inspection of the goods. 13. In the case of Associated Strips Ltd. vs. Commissioner of Central Excise, New Delhi reported in [2002 (143) E.L.T. 131], the Tribunal distinguishing its earlier decision in Commissioner vs. Prabhat Zarda Factory Ltd. [2000 .....

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ds Cylinders are to be marked with the name of the oil companies before they are handed over to the transporter for the purpose of transmission to the buyer. In the light of the provisons contained in Section 23, it has to be taken that the goods are unconditionally appropriated to the contract when the above procedure was followed and goods handed over to the carrier thus passing on the property in the goods to the buyer. 19. We may also refer to the provision contained under Section 39 of the .....

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d to the contract they were delivered to the carrier as per terms of the contract. Therefore, delivery to the carrier has to be taken as delivery to buyer. Revenue has no case that the goods are not sent to the buyer through carrier. On the other hand, as mentioned earlier, the only contention raised is that since the insurance of the goods in transit. At this juncture we may point out that in the case of Maria Udyog Ltd. there is no insurance taken by the seller. 14. The said decision of the Tr .....

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f the goods from the factory premises. The machinery, handed over to the carrier/transporter is as good as delivery to the buyer in terms of Section 39 of the Sale of Goods Act apart from terms and conditions of sale. Section 39 of the Sale of Goods Act reads as under : 39. Delivery to carrier or wharfinger : (1) Where, in pursuance of a contract of sale, the seller is authorised or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, fo .....

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