2024 (6) TMI 843

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..... t (AR) for the Respondent ORDER The issue involved in the present case is that whether excess freight collected as compared to the actual freight paid to the transporter is includable in the assessable value of the excisable goods. 2. Shri S J Vyas, Learned Counsel appearing on behalf of the appellant at the outset submits that the issue is no longer res-integra as the same has been decided by .....

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..... the position that equalised freight was charged by the appellant from everyone, but proceeded to say that even though freight cannot be a part of the assessable value that wherever freight actually paid was less than the amount collected by way of freight and transportation charges the difference was appropriated by the appellant and, therefore, the same would be a part of the assessable value. In .....

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..... t limited issue to be addressed is whether the excess paid freight as compared to the actual should be included in the transaction value for the purpose of charging excise duty. This issue is no longer res-integra as held by the Hon'ble Supreme Court in the case of Baroda Electric Meters (supra) which is reproduced below:- "[Order]. - The Tribunal accepted the position that equalised freight was .....

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..... ugned judgment of the Tribunal is set aside." 5. As held in the above judgment by the apex court that excess amount of freight from the customer is profit on account of transportation and not part and parcel of the value of the goods therefore, same cannot be included in the assessable value. We observe that this judgment was given with reference to un-amended Section 4 and Rules made thereunder .....

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..... e being identical issue involved in the present case, the issue is no longer res-integra accordingly, the demand and penalties are not sustainable. The impugned order is set-aside and the appeals are allowed." 4.3 Considering the above decisions, we are of the view that the excess freight recovered by the appellant from the customer as compared to the actual freight on account of transportation s .....

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