TMI Blog2000 (9) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ludes two per cent towards transit risk insurance. For the purposes of the assessable value of the bulbs and tubes, the respondent claimed a deduction on account of equalised freight based on the elements of transportation charges, insurance charges, octroi and taxes. The respondent filed a statement of actual expenses for the year in question, namely, 1994-95, duly certified by a Cost Accountant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this behalf to the two M.R.F. judgments, Assistant Collector of Central Excise Ors. v. Madras Rubber Factory [1987 (27) E.L.T. 553 (S.C.) = 1986 (Suppl.) S.C.C. 751] and Government of India Ors. v. Madras Rubber Factory Ltd. Ors. [1995 (77) E.L.T. 433 (S.C.) = 1995 (4) S.C.C. 349)] where it has been held that payments in the nature of compensation did not qualify for deduction. 3.Learned c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view that it was compensation that was being paid to the customers, it was part of the cost of the transportation of the goods. 5.We are unable to accept either submission. In the case of transportation what is includible is the cost of taking out insurance to cover the goods transported; in other words, to cover oneself against a possible loss by paying a premium to an insurance company. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
