TMI Blog2024 (2) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... portation (Freight Element) of the excisable goods from the factory to the buyer s premises was liable to be included in the assessable value of the goods for computation of duty. Further, in the delivery terms, it is mentioned freight at actual. Accordingly, the place of removal is the factory gate and not the premises of the buyers - the issue is no more res integra and is covered by the decision of this Bench in the case of M/S FLAKTWOODS ACS (INDIA) PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE S.T., NOIDA-II [ 2016 (9) TMI 1173 - CESTAT ALLAHABAD] where it was held that the, transfer of ownership takes place at the factory gate when the goods are delivered. Therefore, the ld. Commissioner have erred in holding that the goods manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AL ) Shri Manish Raj , Authorized Representative for the Revenue Absent on Call , for the Respondent ORDER P. K. CHOUDHARY : The Respondent is engaged in the manufacture of M.S. Fabricated Hot Dip Galvanized Steel Structures (Tower) . The Officers of AGUP, Lucknow visited the factory premises of the Respondent from 13.12.2010 to 18.12.2010 and conducted audit of Books of Accounts and Central Excise records for the period from April, 2008 to March, 2010. During the course of Audit, it was observed by the Audit party that the Respondent charged freight from their buyers but did include the same in the transaction value in terms of Section 4(3)(d) of the Central Excise Act, 1944 The Act which provides that Trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice and imposed penalty of Rs.51,81,676/- under the provisions of Rule 25 of the Rules readwith Section 11AC of the Act. 2. Being aggrieved, the assessee filed appeal before the first Appellate Authority and the learned Commissioner (Appeals) allowed the appeal before him by setting aside the Order-in-Original. 3. Being aggrieved by the impugned Order-in-Appeal, the Revenue has filed the present appeal before the Tribunal. When the matter was called none appeared on behalf of the Respondent-assessee. 4. Heard the learned Departmental Representative and perused the appeal records. 5. The learned Departmental Representative reiterated the grounds of appeal and relied on the discussions and findings of the Additional Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that transportation charges after the sale of goods from the factory gate were not includible in the assessable value. CCE, Mumbai vs. Official Liquidator for Brimco Plastic Machinery Pvt. Ltd. 2015 (324) E.L.T. 637 (S.C.), wherein the Hon ble Supreme Court in the case of the assessee, manufacturing and clearing Plastic Machinery and installing and commissioning it at the factory sites of their customers, and most of the components of the machineries were manufactured by them, including some components, bought from market and brought to their factory. All such components were taken in unassembled form for the purpose of convenient transportation to the site of their customers, where such machinery is assembled and installed. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Respondent had arranged for the transport of goods to buyer s addresses and the freight charges were mentioned separately in the invoices. The goods after manufacturing in the plant of the Respondent were subject to pre-delivery inspection by the buyer and were ascertained in favour of the particular buyer before the delivery. In the invoices, the Respondent have charged sales tax and have reflected freight separately in most of the cases. We hold that transfer of ownership takes place at the factory gate when the goods are delivered. Accordingly, we do not find any reasons to interfere with the impugned Order-in-Appeal passed by the learned Commissioner (Appeals) and the same is sustained. The appeal filed by the Appellant Revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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