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TMI Blog2005 (2) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003 : The appeal filed by M/s. Kothari Sugars & Chemicals Limited is directed against a demand of duty of Rs. 1,27,534/- and a penalty of equal amount. The demand of duty is consequential to inclusion, in assessable value, of excess freight and insurance charges collected by the assessee from their buyers during 1996-2001. The assessee was collecting freight and insurance charges from their buyer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removal' to the said premises. The Commissioner accepted this argument and held that actual freight and insurance charges collected by the assessee from their buyers were liable to be excluded from the assessable value. However, having found that they had collected excess amounts from their buyers towards these charges during 1996-2001, the Commissioner treated these amounts as extra consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se was a tax on manufacture and not on the profits made by a dealer on transportation. We find that the principle underlying the Supreme Court's decision is also applicable to the excess insurance charge collected by the assessee from their buyers in connection with transportation of the goods from the factory to the buyer's premises. The excess amounts collected for, or in connection with, the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abatement of duty from sale price under Section 4(4)(d)(ii) for valuation purpose. Ld. SDR has informed that the review petition has since been dismissed by the Apex Court. In the result, the ruling in the case of Maruti Udyog Ltd. (supra) continues to hold the field and, accordingly, the impugned order treating sale price as cum-duty price and allowing abatement of duty under Section 4(4)(d)(ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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