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TMI Blog2017 (3) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual sale takes place at the premises of the buyer. Therefore, no abatement on account of freight and insurance is permitted. Accordingly, a show-cause notice was issued for the period 01/04/2003 to 31/03/2004. The adjudicating authority confirmed the demand. Being aggrieved by the order-in-original, the respondent filed appeal before the Commissioner (Appeals), who set aside the demand and allowed the appeal. Therefore, the revenue is before us. 2. Shri S.V. Nair, Learned Assistant Commissioner (AR) appearing on behalf of the revenue reiterates the grounds of appeal. He submits that since the insurance policy was taken by the respondent, the ownership of goods remained with the respondent till the delivery at the customer s premises. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re includible in the assessable value or not. The appellant relies upon the Supreme Court judgement in the case of M/s.Escorts JCB Ltd. 2002 (146) ELT 31 (SC) to stress the point that freight inclusive insurance is not part of assessable value. Secondly, it is their argument that the goods are sold at the factory gate that being the place of removal, the prices are shown ex-factory in the orders accepted for execution by the appellant. The freight charges are separately shown on each of the invoice on actual basis. The insurance is taken by the appellant for the transit of the goods and for any damages the insurance claim is lodged by them. It is also explained by the appellant that in case the goods are damaged in transit it is up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the demand holding that Escort JCB was decided based on certain terms and conditions of sale and purchase in that very case and each case has to be examined in light of similar kind of terms and conditions. In the present case as per the lower authority, Escort JCB is not applicable in view of the fact that the terms and conditions of the sale in the instant case are different than those of M/s.Escort JCB. Further the lower authority holds that the order acceptance form clearly mentions transport by Ispat Industries Ltd. Further, the lower authority observed that order acceptance form of the assessee mentions additional condition such as inspection on site. I have perused the representative purchase orders, acceptance orders an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the place of removal and it is only in terms and conditions of the sale purchase agreements that the delivery of the goods is arranged by the appellant. The appellant submits that there is no other kind of sale purchase of the goods. In view of the stated position the order-in-original is not sustainable and liable to be set aside". From the above order of the Commissioner, it is found that the learned Commissioner has examined the purchase orders, acceptance orders, consignment notes and found that there is no condition related to the issue whether the inspection is carried out at site and therefore, held that the goods was not sold at customer's premises. The freight and insurance from place of removal is excludible from the assessabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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