Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (10) TMI 568 - CESTAT BANGALORE

2016 (10) TMI 568 - CESTAT BANGALORE - TMI - Valuation - transaction value u/s 4(1)(a) of the Act - place of removal - delivery charges and transportation cost beyond the place of removal includible in the assessable value or not - whether the petroleum products cleared from warehouse to Company Owned Company Operated Outlets (COCOO) are to be valued in terms of Section 4(1)(b) of the Central Excise Act, 1944 read with Rule 7 of the Central Excise Valuation Rules? - Held that: - the decision in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

definition of place of removal is relevant. For the period prior to 14.5.2003, the place of removal did not include the premises like COCOO. The price charged by these outlets from the ultimate buyer, therefore, cannot be included in the transaction value for arriving at the duty of Central Excise for the subject goods. - Appeal allowed - decided in favor of appellant. - E/237/2005-DB - Final Order No. 20890/ 2016 - Dated:- 29-9-2016 - Shri S.S. Garg, Judicial Member And Shri Ashok K. Arya, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aying that the appellant is required to pay duty for the goods at the price on which the same were sold by their Company Owned Company Operated Outlets [COCOO] for the relevant period. The period of dispute is March 1999 to November 2001 and the issue is whether the petroleum products cleared from warehouse to COCOO are to be valued in terms of Section 4(1)(b) of the Central Excise Act, 1944 read with Rule 7 of the Central Excise Valuation Rules. 2. The appellant has been represented by the lear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eum products be continued to be made as per hitherto practice of assessment. iii. Rule 7 is not applicable as the COCOO outlets are not place of removal. The definition of place of removal was amended to include depots only w.e.f. 14.5.2003. iv. Issue has been settled in favour of the appellant in the following cases. a. BPCL vs. CCE, Bangalore: 2007 (218) ELT 585 (Tri.-bang.) b. IOCL vs. CCE, Hyderabad: 2010 (252) ELT 396 (Tri.-Bang.) c. CCE, Visakhapatnam vs. BPCL & Others vide Final Order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on cost beyond the place of removal are not includible in the assessable value. vii. Entire demand is barred by limitation. 4. The learned AR, Shri N. Jagadish on behalf of the Revenue inter alia reiterates the findings given by the lower Revenue authorities and further states that the duty is payable at the price being charged by COCOO in terms of Section 4(1)(b) of the Central Excise Act, 1944 read with Rule 7 of the Central Excise Valuation Rules. 5. We have carefully considered the facts of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4.5.2003 which are as follows: Prior to 14.5.2003 place of removal means (a) a factory or any other place or premises of production or manufacture of the excisable goods; (b) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without [payment of duty;] from where such goods are removed; From 14.05.2003 place of removal means- (a) a factory or any other place or premises of production or manufacture of the excisable goods; (b) a warehouse or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tral Excise Act as it was prevailing prior to 14.05.2003 would be relevant. We have noted that the oil companies were receiving petroleum products from various refineries located at different places in India under bond without payment of duty at their terminal points and storing at the Terminal Points without payment of duty. They were clearing the products on payment of duty from the said place. During that period, there is no basis to consider the COCO Outlets as the place of removal . It is n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

whereas the COCO outlets are obviously retail outlets. 6.3 The administrative price mechanism was in vogue for part of the periods involved in each of the three cases as the same was dismantled only from 1st April 2002. However, this has no significance to the issue on hand. The sale prices from the terminal points to the dealers were based on APM prior to 01.04.2002 (that is as determined by a different authority and adopted by the oil marketing companies) and from 01.04.2002 the same have been .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

place of removal for the period prior to 14.5.2003. The case in hand is for the period March 1999 to November 2001, which is prior to 14.5.2003, for which old definition of place of removal is relevant. For the period prior to 14.5.2003, the place of removal did not include the premises like COCOO. The price charged by these outlets from the ultimate buyer, therefore, cannot be included in the transaction value for arriving at the duty of Central Excise for the subject goods. In this regard, CE .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

terial. CESTAT, Kolkata in its decision in Para 6 inter alia observes as under: 6. We have carefully considered the submissions from both sides and perused the Grounds of Appeal. The Commissioner (Appeals) has dealt with the issues under the three categories for the three different periods, as mentioned by the learned Advocate for the Respondents. The factual basis on which the Commissioner (Appeals) has taken the decision, is not being disputed by the Department. We do not find any infirmity in .....

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