TMI Blog2019 (11) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue is settled in favor of the assessee and the freight and insurance charges is not required to be included in the assessable value - The demand of duty by including freight and insurance charges cannot sustain - Appeal allowed - decided in favor of appellant. - Central Excise Appeal No. 23/2012 - A/31022/2019 - Dated:- 5-11-2019 - HON BLE MS. SULEKHA BEEVI C.S, MEMBER (JUDICIAL) AND HON BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) Shri B. Venugopal, Advocate for the appellant Shri A. Rangadham, Superintendent/AR for the respondent ORDER PER: MS. SULEKHA BEEVI C.S 1. The issue that arises for consideration in this appeal is whether freig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in purchase order. Once the transformers are handed over to the carrier/transporter, it is as good as delivery to the buyer in terms of Section 39 of the sale of goods Act. Thus, the place of sale is the factory gate. The assessable value is Ex-factory mentioned in the purchase order and the payment of excise duty on Exworks/ Ex-factory price is in accordance with the provisions of Section 4(1)(a) of Central Excise Act, 1944. He argued that the place of removal is the factory gate eventhough the goods have been delivered at the customers premises. He placed reliance on the decision of Hon ble Apex Court in the case of Ispat Industries Limited reported at [2015(324)E.L.T. 670 (S.C.)]. The decision of the Tribunal in the case of KJV Alloy C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Ispat Industries Limited, it was held that the buyers premises can never ever be a place of removal. Although the case pertained to the period before the amendment to Section 4 as above, the Hon ble Apex Court has discussed the issue both prior to its amendment and after it, in para 16 of its judgment as discussed above. It has been held that if the intention was to cover the expenses up to the place where the goods have been sold, the Section would have said so but the expression is goods are to be sold . Therefore, the place of removal is before the goods are sold, not when the goods have been sold. Further, there is no removal of the goods at the buyer s premises because the place of removal requires the goods to be remove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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