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TMI Blog2018 (11) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual freight incurred in the accessable value under section 4(1)(a) and (b) of the Central Excise Act,1944 read with Central Excise Valuation(Determination of price of excess able goods) Rules, 2000. 3. The brief facts of the case are that appellant is engaged in manufacture of "electric supply meter" classifiable under Chapter sub heading No. 9028.00 of 1st Schedule to Central Excise Tariff Act, 1984. The period involved in the in dispute is from 1/04/2004 to 31/12/2004. The appellant had been supplying the manufactured goods that are 'electric meter' to various State Electricity Board, TATA Power, Reliance Power etc. The contract was, for 'FOR' that the destination, Factory gate sale and also when the buyers got there goods collected as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds manufactured are inspected by the representative of the buyer (Electricity Board) and thereafter the manufacturer had to mark the name of the buyer on the poles before they are handed over to the transporter. So also in the case of Mauria Udyog Ltd. the LPG cylinders manufactured by the appellant are inspected by the representatives of the oil companies. After getting test certificate from the Bureau of India Standards Cylinders are to be marked with the name of the oil companies before they are handed over to the transporter for the purpose of transmission to the buyer. In the light of the provisions contained in Section 23, it has to be taken that the goods are unconditionally appropriated to the contract when the above procedure was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivery of the goods at the place of the buyer. The terms and conditions of the sale are clear that the sale is Ex-works at Ballabgarh, Haryana. The payment is to be made before despatch of the goods from the factory premises. The machinery, handed over to the carrier/transporter is as good as delivery to the buyer in terms of Section 39 of the Sale of Goods Act apart from terms and conditions of sale. Section 39 of the Sale of Goods Act reads as under: 39. Delivery to carrier or wharfinger : (1) Where, in pursuance of a contract of sale, the seller is authorized or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer, or delivery of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been held in the case of M/s Baroda Electric Meter Vs. Commissioner of Central Excise,1997 (22) RLT (ST), Indian Oxygen Ltd 1988 (36) ELT 723 by the Hon'ble Supreme Court that even if the excess amount is released on the account of freight from the buyers it cannot be part of the excessable value under Rule 5 of CVR-2000, their view is further upheld in case of Commisioner of Central Excise, Noida vs. Accurate Metes Ltd [20099235) ELT 581 (SC) ] at para 15, which is extracted as under; 15. In that view of the matter and for the reasons stated hereinbefore, we have no doubt in our mind that the authority in appeal as also the Tribunal were correct in their view that the amount claimed by way of transportation charges and insurance cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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