TMI Blog2019 (7) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... f discharge, the freight charges paid by the buyer to the shippers included the charges for freight not only upto BFL but also to Dharamtar. Appeal allowed - decided in favor of appellant. - Excise Appeal No. 1728 of 2011 - A/86141/2019 - Dated:- 18-6-2019 - Dr. D.M. Mishra, Member (Judicial) And Mr. P. Anjani Kumar, Member (Technical) Shri Prasad Paranjape, Advocate for the appellant Shri A. Choudhary, DC (AR) for the respondent ORDER PER: DR. D.M. MISHRA This is an appeal against Order-in-Appeal No. TH-I/RKS/25/2011 dated 11.10.2011 passed by the Commissioner of Central Excise, Mumbai-I. 2. Briefly stated the facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pots. He submits that with the amendment to place of removal with effect from 01.07.2000, the definition of place of removal prescribed under section 4(3)(c) of Central Excise Act, has been amended whereunder a depot, premises of a consignment agent or any other place or premises from where the excisable goods are sold after the clearance from the factory has been deleted leaving only the place of removal as the factory or place or premises of production or manufacture of the excisable goods and a warehouse or any other place where the goods have been permitted to be deposited without payment of duty. It is his contention that therefore since during the period in question depot was not considered as a place of removal, hence the transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this Act, the excise duty is chargeable on any excisable goods with reference to their value, then, on each removal of the goods such value shall be, in a case where the goods are sold by the assessee for delivery at the time and place of removal, and the assessee and buyers of the goods are not related and price is the sole consideration for sale, be the transaction value. In any other case, where the goods are not sold at the time and place of removal, the value shall be determined in terms of provisions of Central Excise Valuation Rules, 2000. 7.2 Thus, in terms of Section 4(1), the assessable value of the goods is the transaction value at the time and place of removal. The place of removal during the period of disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions made by both the sides and perused the records. From the order-in-original as well as the order of the Commissioner (Appeals), we find that the demand was confirmed only on the ground that the sales depot of the appellant is the place of removal. Therefore, transportation from the factory gate upto the depot is not excludable from the assessable value. During the relevant period the definition of place of removal was as under : Section 4(3)(c) : place of removal means - (i) a factory or any other place or premises of production or manufacture of the excisable goods; (ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue. Therefore, the findings of both the lower authorities is contrary to clear provisions of law on the inclusion/exclusion of transportation charges as discussed above. The very same issue has been considered by this Tribunal in the case of Andhra Pradesh Paper Mills Ltd. (supra) wherein the Division Bench of this Tribunal has clearly held that for the period from 1-7-2002 to 13-5-2003 there cannot be any demand on incidental charges like freight and insurance charges for clearance of goods from factory gate to depot. For the reason that the depot was absent in the definition of place of removal in the Central Excise Act, 1944. The relevant order of the Tribunal is reproduced below : 7.2 As regards the demand of duty fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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