TMI Blog2016 (2) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... the buyer’s premises. The variation in actual cost of transportation has no relevance so as to effect the ex factory transaction value. The Hon'ble Supreme Court in the case of Indian Oxygen Ltd. (1988 (7) TMI 58 - SUPREME COURT OF INDIA ) held that if the ex factory is ascertainable, the cost of transportation or transit expenses were not to be considered as they have nothing to do with the manufacture of goods. When the price at factory gate is available, any extra amount collected in transportation charges cannot be considered for addition. In the case of Filament India Vs. CCE, Jaipur reported in (2003 (6) TMI 110 - CESTAT, NEW DELHI ), the Tribunal held that when the sale and delivery take place at the factory gate and freight charges, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order, the appellant is before us. 3. The main ground of appeal is that freight is not part of the assessable value when the sales are effected at the factory gate. The cost of transportation of the goods from the factory gate to the buyer is excludible from the assessable value. When the place of removal for excise valuation proposed is determined to be factory gate, any amount collected towards freight for delivery of the goods to the buyer has no relevance for valuation. The Department s contention is that the appellant collected certain amount in excess of actual freight and such amount should be added to the assessable value as additional consideration is not legally tenable. They have relied on the decision of this Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he transportation is undertaken by the appellant, only actual freight can be excluded. He reiterated that in terms of Rule 5 of Central Excise Valuation Rules, 2000 amount which is not attributable to the freight is to be added in the assessable value. 9. Heard both the sides and examined the appeal records. 10. The question for decision is liability of the appellant for central excise duty in respect of the amount received from the buyers towards freight which is in excess of actual freight incurred by them. The first point for determination is whether assessment of value in the present case is to be at the factory gate or not. The Original/Appellate Authority held that place of removal and delivery is not factory gate. The goods hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and is tainted. There is no finding by the lower authorities to this effect. The only ground on which certain additions on the ex factory price was sought to be made is that the freight elements shown in the purchase order is not the actual freight amount. So, the excess, if any over and above the actual cost of transportation was sought to be added to the value. It is very clear that Rule 5 of the Valuation Rules will come into ply only when the provisions of Section 4 (1)(a) are not fulfilled. In the present case the goods are sold by the assessee and the purchase order clearly indicates the transaction value ex factory and the place of removal is ex factory. The appellant undertaking the transport duties will not make the place of remo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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