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Manufacturer V/s Buyer’s Premise-place of removal --- Settling to unsettle and settle again?

Manufacturer V/s Buyer’s Premise-place of removal - Settling to unsettle and settle again? - Central Excise - By: - Rakesh Singh - Dated:- 23-12-2015 - Till recently based upon two relevant Judgements from the Honorable Supreme Court i.e in the case of M/s Escorts JCB Ltd. V.CCE 2002 (10) TMI 96 - SUPREME COURT OF INDIA and CCE V. M/s Roofit Industries 2015 (4) TMI 857 - SUPREME COURT, the concept of place of removal was more or less considered settled that it can be place of buyer. In the case .....

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ted in the case of CCE V. Prabhat Zarda Factory Ltd. 2000 (5) TMI 63 - CEGAT, COURT NO. I, NEW DELHI It was held that transfer of possession of goods is the essence of sale. Then came the case of CCE V. Roofit Industries and in which it was held that place of removal can be buyers place. The clear intent of the purchase order was to transfer the property in goods to the buyer at the premises of the buyer when the goods are delivered and by virtue of Section 19 of Sale of Goods Act, the property .....

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s a different intention appears, the rules contained in sections 20 to 24 are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer. Two circulars i.e No. 97/8/2007 dt. 23-08-2007 & No.988/12/2014-CX dt. 20-10-2014 issued earlier to this decision also maintained the relevance of time of transfer of goods to buyer or place of sale as relevant deciding factors to ascertain place of removal. In this context reference to Sub .....

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actory from where such goods are removed; (cc). time of removal , in respect of the excisable goods removed from the place of removal referred to in sub-clause (iii) of clause (c) shall be deemed to be the time at which such goods are cleared from the factory. Interpretation of the words any other place or premises from where excisable goods are to be sold was considered to mean that any other place includes buyers place and are to be sold to indicate the point or place of passage of ownership o .....

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r transportation of goods from the factory gate to the buyer's premises, treating the buyer's premises as the place of removal Held that:- Three important changes have been made in the amended Section 4 so far as the present case is concerned. First, the value of excisable goods is deemed to be the normal price thereof that is the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade. Where the goods are sold at different prices to diff .....

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is excluded from the computation of excise duty provided it is charged to the buyer in addition to the price of goods and shown separately in the invoices for such goods. Interestingly, despite the substituted Section 4 not providing for a depot or other premises as a place of removal, Rule 7 deals with the normal transaction value of goods transferred to a depot or other premises which is said to be at or about the same time or the time nearest to the time of removal of goods under assessment. .....

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