TMI Blog2004 (9) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... lants) are engaged in the manufacture of Caustic Soda Lie, Caustic Soda Fakes, Orthophosphoric Acid, Hydrochloric Acid, DCP etc., falling under various chapters of the Central Excise Tariff Act, 1985. The brief facts of the case are as follows :- 2. As per the terms of delivery for the various products manufactured and sold by the appellants, the sale is on ex-factory basis. However at the req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 4(1)(b) of the Central Excise Act read with provisions of the Central Excise Valuation Rules in terms of which the cost of transportation would be excluded only if the same is shown separately in the invoice of the excisable goods. The adjudicating authority confirmed demand of duty of Rs. 49,30,774/- on inclusion of transportation charges in the assessable value and also imposed penalty of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointed out that the Commissioner (Appeals), had not appreciated the submission made by the appellants before him. Department did not have any material or evidence to come to the conclusion that the goods are not sold at the factory gate. Moreover, the freight collected by the appellants is the actuals. In their letter dated 25-9-2001, the appellants had stated the factual position that all sales a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and collected the transportation charges. When the price is ex-factory, the valuation will be under Section 4(1)(a) and there is no need to go to Section 4(1)(b). Therefore, Valuation Rules also will not be applicable, when ex-factory price is available. Under these circumstances, it is not necessary to show the cost of transportation in the invoice. In any case, it is not the case of the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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