TMI Blog2000 (5) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... removal" for the purpose of Clause (iii) of Section 4(4)(b) of the Central Excises Act, 1944 (hereinafter referred to as the 'Act'). 2.In Escorts J.C.B. Ltd. v. Commissioner of Central Excise, New Delhi - 1999 (35) RLT 9 (CEGAT), a bench of this Tribunal had taken a view that when the manufacturer continued to remain the owner of the goods till the goods reached the buyer's destination, the place of removal for the purpose of Section 4(4)(b)(iii) of the Act will be the buyer's premises. It was an admitted position that M/s. Escorts had insured the goods on their account when they were transported to the place of their buyers. Insurance policy was in their name. In case of loss in transit, the Insurance Company was to re-imburse them. M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point of sale to the customers from the transporters godown at the place of buyers. He submitted that a correct law has been laid down by the Tribunal in the case of Escorts J.C.B. Ltd. Intervening, Shri V. Lakshmi Kumaran, Advocate expressed the view that the ownership was not relevant for interpreting the expression "place of removal". He referred to Section 4 (2) of the Act and submitted that even after the definition of "place of removal", the main Section 4 has not undergone any change. 4.We have carefully considered the matter. As a part of Finance (No. 2) Act, 1996 (Act 33 of 1996), enacted on 28-9-1996, in Section 4 of the Act, in sub-section (4), after sub-clause (ii), the following sub-clause was inserted with regard to the pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, etc. are the "place of removal" for the above provisions of law, from where the excisable goods are removed. 6.The Board's Circular No. 251/85/96-CX., dated 14-10-1996 appearing at page T 48 in 1996 (87) E.L.T. with reference to the amendment in the definition of "place of removal" vide Finance (No. 2) Act, 1996 clarifies that the sale price at any of the specified places of removal will be the normal price for levy of excise duty, and there can be different assessable values for the same excisable goods depending upon the place of removal. In the context of the insertion of Clause (ba) in Section 4 (4), relating to the "time of removal" the above circular further clarified that the duty was required to be paid at the time of clearance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s depot, etc. has to be taken as normal sale price for determination of assessable value. A sale price at any place of removal other than factory gate has to take into account all the expenses incurred towards transport including freight, insurance, etc. from factory gate to such place of removal and other expenses incurred in maintaining and running the said place of removal and thus all these expenses will form part of the sale price for determination of assessable value. After amendment of Section 4, depots, etc. have been declared as "places of removal" and as such sale price prevailing at such depots etc. which will include transport charges, etc. will be known at the "place of removal" i.e. the storage depots, etc. and as ' such Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alongwith insurance thereof, on his own account. We are concerned with the goods which were transported on account of M/s. Prabhat Zarda Factory Ltd. to the destination of the buyers through the transport agency. The goods were stored on their behalf in the godown of the transport agency at the destination of the buyers. The goods were insured in the name and on the account of M/s. Prabhat Zarda for covering the risk of loss/damage during transportation of the goods, to the godowns of the transport agency at the destination of the buyers. If the damage occurred during transit, then it was the loss of the manufacturer. The ownership of the goods remained with them. They were both the consignor and the consignee. The goods were delivered to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not concerned with such a situation. Similarly, Circular No. 287/3/87-CX., dated 14-1-1997 appearing at page T-13 of 1997 (90) E.L.T., referred to on behalf of the manufacturers, dealt with a situation where the place of removal was different from the place of delivery. The place of removal is the place where the possession of the goods had been transferred from the manufacturer to his buyer. It could so happen that while the possession of the goods had been transferred at place A, the buyer takes delivery of the goods at place B. Such a situation alone is covered by Section 4(2) of the Act. Ministry's instructions dated 14-1-1997 makes this position clear when it is mentioned that the deduction of equalized freight/averaged freight ..... X X X X Extracts X X X X X X X X Extracts X X X X
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