TMI Blog2023 (7) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... e only upto the place of removal ie, depot in this case. The Appellant has been delivering the goods from their depot to the dealer s premises. The cost of transportation of the goods from the depot to the dealer s premised is not includable, as per the amended section 4 of the Central Excise Act, 1994. The Commissioner (Appeals) agrees that the cost of transportation upto the place of removal only includable in the assessable value. But, he rejects the claim of deduction of equalized freight made by the Appellant on the ground that the CA certificate did not clarify what constitutes primary and secondary freight. It is observed that the CA certificate has claimed deduction of equalized freight only from the depot to the dealer s premise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... K. ANPAZHAKAN : The issue involved in the present appeal is regarding the eligibility of deductions claimed by the Appellant on account deduction of cost of transportation incurred from depot (being the place of removal) to the dealer s place. The Appellant stock transferred their final products to various depots from where they sold the goods to their ultimate customers. They determined the assessable value after deducting the cost of transportation and paid central excise duty accordingly. They filed Price Lists wherein they claimed deduction on account of cost of transportation on equalized basis. 2. A show Cause Notice dated 29.06.2001 was issued to the Appellant proposing to levy short paid excise duty on the ground that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs destination. (iii) The finding of the commissioner (Appeals) that the CA certificate does not clarify what constitutes primary and secondary freight is baseless in as much as they clearly stated that the cost of transportation that is being claimed as deduction from the place of removal (branches) to dealers destination. (iv) The annexure to the CA certificates provides the mechanism of computation of freight towards transportation charges, which clearly shows that the deduction has been claimed only on the transportation charges from the depot to dealer s destination. (v) With regard to the reliance placed on Circular dated 14.01.1997, they submitted that the department has wrongly interpreted the Circular. Para 5 of the circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. CCE 2002 (146) ELT 497 (SC) Ray Ban Sun Optics (P) Ltd. vs. CCE 2002 (140) ELT 96 (T) (ix) They have duly filed price lists with the department showing the deductions claimed and therefore, there cannot be any allegation of suppression. Therefore, the extended period cannot be invoked and the demand is substantially time barred. 6. The Ld. Departmental Representative reiterated the findings in the Order-in-Original 7. Heard both sides and perused the appeal records. 8. The issue involved in the present appeal is whether deduction on account of cost of transportation on equalized basis, is admissible or not. The Appellant has stock transferred their final products to various depots from where they sold the goods to their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Circular does not allow deduction of equalized freight. For ready reference, the said Circular is reproduced below. F.No. 6/55/96-CX.1 Government of India Ministry of Finance Department of Revenue, New Delhi Subject : Determination of Assessable value - Equalisation of freight in cases of multi product, multi factory companies Sub-Section (2) of Section 4 of the Central Excise Act, 1944 provides for exclusion of the cost of transportation from the place of removal to the place of delivery, from the value of excisable goods, where the price thereof for delivery at the place of removal is not known and the value is determined with reference to the price for delivery at a place other than the place of remov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether, the pro-rata cost for exempted, non-excisable and specific rated products transported deducted therefrom and the balance amount allocated to individual and valorem rated products on weight basis, sale-unit basis. 4. The matter has been further examined and it is felt that in multi-products and multilocation factories if equalised freight cannot be worked product wise, the principle laid down by the CEGAT in above said decision may be followed to work out equalised freight/averaged freight for the purposes of Section 4(2) of Central Excise Act, 1944. 5. For removal of any doubt, it is further clarified that the deduction of equalised freight/averged freight from the price prevalent at other place of removal as defined unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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