TMI Blog2017 (8) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... of transportation from the place of removal to the place of delivery shall be deducted from such price - demand upheld - appeal dismissed - decided against appellant. - E/00089, 00090/2006 - 40985-40986/2017 - Dated:- 12-6-2017 - Smt. Sulekha Beevi C.S, Judicial Member And Shri V. Padmanabhan, Technical Member For the Appellant - Shri Akhil Suresh For the Respondent - Shri L. Paneerselvan, AC (AR) ORDER Per Bench: The present appeal is against Orders-in-Appeal No.130 131/2005 (M-I), dated 24.12.2005. 2. M/s SPIC Ltd were engaged in the manufacture of Caustic Soda Lye. They had entered into a contract for sale of Caustic Soda Lye (CSL) to M/s Nalco, Damanjodi, Orissa @ consolidated price per dry metri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the harbour and were selling the goods to other customers also from the premises. The assessee had not denied the fact that the depot was the place of removal of the impugned goods. The assessee had claimed that various items of expenditure had been incurred for delivery of the goods in addition to freight which were not liable to be included in the assessable value. 3. When the order passed by the original authority was challenged before Commissioner (Appeals), he upheld the demand, however, allowed abatements towards conversion charges and survey charges on the basis of actuals declared by the appellant. Accordingly, the demand was reduced. Aggrieved by impugned orders, the present appeal has been filed. 4. With the above background ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot under Rule 57GG invoices. As per the contract with the buyer, the assessee received an amount @ ₹ 10969 (9500 + 1469) per DMT for delivery of the impugned goods at the port of discharge i.e., Visakhapatnam. The goods were removed to their customer from the assessee's depot and not from the factory gate and, therefore, as held by the lower appellate authority, the ex- factory price of ₹ 9,500/- cannot be adopted as the assessable value and same has to be determined with reference to the price at the actual place of removal which is the harbour depot in this case. As per Section 4(2) of the Act, it the price of goods for delivery at the place of removal is not known and the value thereof is determined with reference to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , marketing and selling organization expenses and after-sale service promote the marketability of the article and enter into its value in the trade. Where the sale in the course of wholesale trade is effected by the assessee through its sales organization at a place or places outside the factory gate, the expenses incurred by the assessee upto the date of delivery under the aforesaid heads cannot on the same grounds be deducted. But the assessee will be entitled to a deduction on account of the cost of transportation of the excisable article from the factory gate to the place or places where it is sold. The cost of transportation will include the cost of insurance on the freight for transportation of the gods from the factory gate to the pl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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