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CC&CE, Raipur Versus M/s Jaiswal Steels Enterprises Pvt. Ltd.

2016 (6) TMI 575 - CESTAT NEW DELHI

Valuation - Disallowancwe of deduction for freight - freight indicated was equalised freight and hence not actual transportation charges - Held that:- since the delivery in this case is FOR destination, the case will fall under Section 4(1)(b) and not under Section 4(1)(a). As per Rule 5 of the Valuation Rules, in order to allow the deduction of the cost of transportation following criterion should be fulfilled : (a) The goods should be sold for delivery at a place other than place of removal, ( .....

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rice of the goods. It is clear from the terms of the bid documents also that basic price and other components have to be indicated separately. Therefore, there is no dispute that basic price and the freight components are clearly indicated separately in the invoices and therefore criterion i.e. cost of transportation should be in addition to the basic price of the goods stand fulfilled. - Therefore, we find no valid reason for disallowing the deduction for the freight paid inasmuch as the go .....

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Petitioner : Sh. R. K. Mishra, AR For the Respondent : Shri Arun Pathak, Advocate ORDER Per: V. Padmanabhan: Brief facts of the case are that the respondent are engaged in the manufacture of excisable goods falling under chapter headings 73.07 and 86.07 of the Central Excise Tariff for supply to various Circles of Department of Telecommunications (DoT) and its successor Bharat Sanchar Nigam Limited (BSNL). The DoT/ BSNL finalised purchase orders for various goods on the basis of bids supplied b .....

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uction for freight on the ground that the freight indicated was equalised freight and hence not actual transportation charges. The consequential differential duty was demanded by the original adjudicating authority vide order dated 31.08.2006. Since this demand was held to be unsustainable by the Commissioner (Appeals) vide order dated 29.12.2006, the Revenue is in appeal. 2. The main argument putforth by the respondent was that, since the delivery is FOR destination, a deduction for transportat .....

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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 includes- (i) the actual cost of transportation ; and .....

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place of removal, transaction value of excisable goods shall not include actual cost of transportation from the place of removal up to the place of delivery of such excisable goods. As per the rule reproduced above, in order to allow the deduction of the cost of transportation following criterion should be fulfilled : (a) The goods should be sold for delivery at a place other than place of removal. (b) Cost of freight should be in addition to the price for the goods. (c) Cost of transportation s .....

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