TMI Blog2019 (7) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... e cleared whether from the factory of the manufacturer, its depot or warehouse or from any other place. No doubt the place can be the buyer s place as well but the criteria still remains the conclusion of sale. From the adjudicating authorities order itself it is apparent that except for inclusion of freight prices in the price of purchase, every other formality of completing the sale got concluded at the time of clearance itself. It has been acknowledged in the Order as well as in the show cause notice that all the verifications, approvals as were agreed to be required by the buyer also got conducted at the manufacturers factory itself - In the given circumstances, the sale of impugned goods got completed prior the goods got cleared f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty of ₹ 48,64,097/- and ₹ 2,16,002/- respectively alongwith the interest at the appropriate rate and the proportionate penalty. This proposal was initially confirmed by the original adjudicating authority vide Order No. 3826 dated 25.11.2016. Being aggrieved, an Appeal was preferred before Commissioner(Appeals) who vide the impugned Order has set aside the demand and has allowed the Appeal of the assessee. Being aggrieved, the Department is before this Tribunal. 3. We have heard Shri P. Juneja, learned Authorised Representative on behalf of the Department and Shri R.G. Choudhary, learned Advocate on behalf of the assessee/respondent. 4. It is submitted on behalf of the appellant/Department t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he manufacturers place itself. Transportation charges, in the given circumstances cannot be included in the transaction value. Appeal is accordingly prayed to be dismissed. 6. After hearing both the parties and perusing the entire record, we observe and hold as follows: 6.1 The original Adjudicating Authority had confirmed the demand observing that in the contracts awarded to the assessee it is mentioned that prices are all adjusted FOR destination i.e. price inclusive of freight and insurance charges, excise duty, VAT and FOR delivery of material in buyers store. Hence the FOR amount has to be the part of the transaction value. While adjudicating the correctness of these observations it is necessary to look ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from where such goods are removed; Perusal of both these provisions makes it clear that the amount to be included in the transaction value is an amount till the stage the sale of goods gets completed. We draw our support from Section 19 of Sale of Goods Act, 1930 which reads as follows: 19. Property passes when intended to pass.- (1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. (2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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