TaxTMI 
TaxTMI 
2016 (12) TMI 144
X X X X Extracts X X X X
X X X X Extracts X X X X
....ied Battery chargers of various capacities to various etc., upon the agreement / supply order given by the customers. The departmental authorities observed that the purchase orders were for mainly manufacture, supply and erection of the goods supplied and the transportation clauses included in the purchase orders stipulated for F.O.R destination. It appeared to the Department that the sales invoices were raised when goods were cleared from the factory gate and after the goods were delivered separate invoices were raised for transport charges and Central Excise duty was calculated only on the cost of the goods mentioned in the first invoice, when goods were cleared and the duty was not discharged on the transportation charges mentioned in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....yers, which show the ex-factory price separately along with the excise. d) The lorry receipt prepared by the transporters shows the name of the buyer viz Indian Railways as the "consignee" and appellant as the consignor. e) Thus the freight which has been arranged is on behalf of the Indian Railways and hence such freight arranged on their behalf is also got reimbursed from Indian Railways by issue of invoices for the same. The said reimbursement of freight charges independent of basic ex - works price paid for the final product sold to them. f) The transfer of ownership and title to goods passes no sooner the impugned goods are loaded on to the truck arranged for transportation of their goods on their behalf. g) The arrangement of tra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t has relevance when it comes to sale of goods and not "Sale and purchase" as referred to in Section 2(h) of C. Ex Act, 1944, which only refers possession of goods" and not in the context of "transfer of title of goods". k) It would be appreciated that in the context of Central Excise, even when the goods are cleared from depot of the same manufacturer to his own unit, as there is change of possession of goods and there are accounting entries passed in the books of accounts, such transfer of goods is also regarded as sale, as held by Tribunal in the context of allowing credit of goods given from depot to factory, when it was objected to by the department as not constituting sale. 2.2. The Id. counsel relied upon the following case laws. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....not apply since the facts are different. In the Roofit case, price of the goods was inclusive of transportation. Secondly it was manifest that sale of goods therein did not take place at factory gate of assessee but at the place of the buyer, on the delivery of the goods in question. However in the instant case, inspection of the goods was required to be done by Railways at appellant's factory, only after which the goods could be despatched. A perusal of sample inspection certificate dated 10.08.2009 certifies that: Stores put up for inspection on : lnspeeted on: Last date of Delivery: 1. The-stores mentioned on the reverse were finally inspected and passed 2. The stores were tendered within the delivery period/as extended by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for the transportation bf-goods to be delivered at the buyer's premises and the transportation charge was paid by the assessee who was subsequently reimbursed by the buyers. It is also indicated from the records that the place of removal and sale of the goods were at the factory gate and the ownership of the excisable goods were transferred to the buyers at the factory gate only. The decision of this Court in Escorts JCB Ltd. v. Commissioner of Central Excise, Delhi-II reported in 2003 (1) SCC 281 = 2002 (146) 31 (S.C.) wherein this Court after referring to various decisions and also the provisions of Sale of Goods Act, upheld the decision of the Tribunal in Associated Strips Ltd. v. CCE - 2002 (143) 131 (Tri.). In the context thereof,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e case of CCD, Noida Vs. Accurate Meters Ltd [2009(235) ELT 581 (SC) - (2009-TIOL-31-SCCX-LB) wherein it was held that the amount claimed by way of transportation charges and insurance cannot be considered for determining the value of the goods supplied Therefore, he submitted that a suitable order may be passed by the Bench. 4. None appeared on behalf of the respondents despite notice but the respondents have filed cross objections in support of the findings of the Commissioner(Appeals). 5. The short' question involved in this case is whether the freight and insurance charges are required to be added in the assessable value of the goods, Since the issue has already been settled by the Hon'ble Supreme Court in the case Accurate M....