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2016 (8) TMI 443 - CESTAT ALLAHABAD

2016 (8) TMI 443 - CESTAT ALLAHABAD - TMI - Includibility - Freight element or cost of transportation - incurred after the point of removal of goods from the factory gate - two separate contracts, one is for sale and another is for transportation, packing, forwarding and insurance purposes - Held that:- in view of the decision of Tribunal in the case of CCEx., Allahabad Vs. Chandra Metals Pvt. Ltd. [2014 (5) TMI 678 - CESTAT NEW DELHI], and in view of the decision of Supreme Court in the case of .....

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charges can not be included in the assessable value of the goods for the purposes of computation of Central Excise duty. - Decided against the revenue - Ex. Appeal No.2387/06 - Dated:- 25-2-2016 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) AND MR. ASHOK KUMAR ARYA, MEMBER (TECHNICAL) For the Petitioner : Shri Rajeev Ranjan, Joint Commissioner (A.R.) For the Respondent : Ms. Shreya Dahiya, Advocate ORDER PER MR. ASHOK KUMAR ARYA : Both the parties have been heard. 2. This appeal has been filed by .....

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3. The Revenue represented by ld.A.R., Shri Rajeev Ranjan, mainly argues that the cost of transportation is a part of the value of the goods and transportation cost incurred for transporting the goods to the buyers place, is to be included in the value of the goods for the purposes of duty of Central Excise. He argues that the freight charges recovered on equalized/average basis though on separate invoices, have to be included in the value of the goods. 3.1 The ld.A.R. further argues that the .....

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for transportation, when sale is completed at the factory gate itself, the said freight charges cannot be included in the value of the goods for the purposes of duty of Central Excise. She cites the following decisions in support : (i) Commr. of Customs & Central Excise, Nagpur Vs. M/s Ispat Industries Ltd : 2015-TIOL-238-SC-CX ; (ii) Commr. of Central Excise, Mumbai III Vs. EMCO Ltd. : 2015-TIOL-163-SC-CX ; (iii) Commr. of Central Excise, Allahabad Vs. Chandra Metals Pvt. Ltd. : 2014-TIOL-7 .....

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n connection with the sale, as the sake was over at the factory gate itself. It was also possible that the assessee may charge some amount over and above the actual freight and insurance cost incurred by him, even then such additional charge should not be includible in the assessable value of the goods. 6.1 From the record, we note that there are two separate contracts, one is for sale and another is for transportation, packing, forwarding and insurance purposes. One cannot say that the sale of .....

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.The CESTAT, Delhi in the case of CCEx., Allahabad Vs. Chandra Metals Pvt.Ltd. (cited supra), has held that cost of transportation from the place of removal to the place of delivery, is not to be included in the assessable value, even there cost of transportation has been calculated on average basis. In this regard, Para 8 of the said decision is referred below : 8. In view of above cited judgement of the Tribunal, it clearly comes out that the cost of transportation from the place of removal to .....

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