GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (3) TMI 800 - CESTAT ALLAHABAD

2016 (3) TMI 800 - CESTAT ALLAHABAD - 2016 (336) E.L.T. 180 (Tri. - All.) - Assessable value - whether inspection charges with respect to a specific inspection of the buyer is required to be added to the assessable value? - Held that:- As per the definition of 'place of removal' extracted above, given in Section 4 (3) (c) at the relevant time was a factory or any other place or premises or a warehouse wherein the excisable goods have been permitted to be deposited without payment of duty. There .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

02 also provide that cost of transportation from the place of removal to the place of delivery is required to be excluded from the transaction value. In the present case the sale is effected at the factory gate which is the place of removal and transportation cost is separately indicated in the invoices - As for the period 1/7/2000 to 31/3/2003, place of removal was only extended to either the factory or a warehouse/premises from where duty was paid. Appeal of the appellant on this account i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(12) TMI 874 - SUPREME COURT ) also held that pre-delivery inspection charges cannot be included in the assessable value. In view of the above observations and settled proposition of law, optional inspection charges at the instance of buyer cannot be included in the assessable value under Section 4 of the Central Excise Act, 1944. - Decided in favour of revenue - Excise Appeal Nos. E/1708/2007, E/2018/2007 & E/2106/2007 - Final Order Nos. A/70037-70039/2016 - Dated:- 13-1-2016 - Anil Choudhary, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n behalf of the Reverse argued that Commissioner (Appeal) has no power to adjudicate the case and the case should have been remanded back by Commissioner (Appeal) to the Adjudicating authority instead of passing a final order. 3. Ms. Shreya Dahiya (Advocate) appearing on behalf of the appellant argued that the issue involved in the present appeals is regarding inclusion of freight/insurance charges from the factory gate to the buyers premises and inspection charges, at the instance of the buyers .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

) Commissioner of Central Excise, Mysore Vs. M/s. TVS Motors Company Ltd. - 2015-TIOL-299-SC-CX (ii) Commissioner of Central Excise, Ahmedabad-II Vs. Lubi Submersible Ltd. [2015 (317) ELT 299 (Tri.-Ahmd.)] 3.1 On the issue of freight and insurance from the factory gate to the place of delivery it was argued that the period of demands is from 17/9/2000 to 30/9/2002. That during this period "a depot, premises of consignment agent or any other place or premises from where the excisable goods a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at as per Rule 5 of the Central Excise Valuation (Determination of price of Excisable goods) Rules, 2000, the cost of transportation to the place of removal is required to be excluded from the transaction value. Learned Advocate relied upon the case law of Apex court in Commissioner of Customs & Commissioner of Customs, Nagpur Vs. M/s. Ispat Industries ltd. - 2015-TIOL-238-SC-CX 3.2 It was also argued on behalf of the appellant that freight and insurance is charged separately in the invoices .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessable value, as the sale of goods takes place at the door steps of the buyers. 5. Heard both sides and perused the case records. The first issue involved in these appeals is whether inspection charges with respect to a specific inspection of the buyer is required to be added to the assessable value. The second issue is whether freight and insurance charges paid by the appellant initially and reimbursed later, are required to be added to arrive at the be assessable value under Section 4 of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iled by the Revenue seeking remand of the case to the Adjudicating authority has no merits and is required to be dismissed. 6. Regarding the appeals filed by the appellant M/s. Classic Polytubes Pvt. Ltd., the issues involved is inclusion of inspection charges at the instance of the buyer and freight/insurance charges from the place of removal, in the assessable value under section 4 of the Central Excise Act, 1944. 6.1 The 'place of removal' during the relevant period was defined in Sec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d below: "Where any excisable goods are sold in the circumstances in clause (a) of sub-section (1) of section 4 of the Act except the circumstances in which the excisable goods are sold for delivery at a place other than the place of removal, then the value of such excisable goods shall be deemed to be the transaction value, excluding the actual cost of transportation from the place of removal upto the place of delivery of such excisable goods provided the transportation is charged to the b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t place of removal is the factory or a premises from where duty is paid and not where the goods are sold. The words, like ''a depot, premises of consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory" were not existing in Section 4 (3) (6) during the relevant period. Further Rule 5 of the Valuation rules, 2002 also provide that cost of transportation from the place of removal to the place of delivery is r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cise 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. 22. To complete the picture, by an Ame .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

5. Where any excisable goods are sold in the circumstances specified in clause (a) of sub-section (1) of Section 4 of the Act except the circumstances in which the excisable goods are sold for delivery at a place other than the place of removal, then the value of such excisable goods shall be deemed to be the transaction value, excluding the cost of transportation from the place of removal upto the place of delivery of such excisable goods. Explanation 1 - "Cost of transportation "inc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ter 14.5.2003, the position as it obtained from 28.9.1996 to 1.7.2000 has now been reinstated. Rule 5 as substituted in 2003 also confirms the position that the cost of transportation from the place of removal to the place of delivery is to be excluded, save and except in a case where the factory is not the place of removal. 24. It will thus be seen that, in law, it is clear that for the period from 28.9.1996 up to 1.7.2000, the place of removal has reference only to places from which goods are .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tended place of removal, the factory premises or the warehouse (in the circumstances mentioned in the Section), alone being places of removal. Under no circumstances can the buyer's premises, therefore, be the place of removal for the purpose of Section 4 on the facts of the present case. 6.4 The present appeals are squarely covered by above ratio laid by the Apex Court and for the period 1/7/2000 to 31/3/2003, place of removal was only extended to either the factory or a warehouse/premises .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version