Transaction value includes excess transit insurance charges recovered from buyers; pre-deposit relief was limited and penalty waiver was conditional.

Excess transit insurance charges recovered from buyers were treated as prima facie includible in transaction value under Section 4(3)(d) of the Central Excise Act, 1944 because the amount was paid in connection with the sale. No sufficient ground was found for waiver of pre-deposit, so conditional relief was granted only to the extent directed. The matter was disposed of with a direction to deposit the duty amount within the stipulated time, while waiver of penalty was allowed on compliance.

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Issues: Whether the excess transit insurance charges collected from buyers were prima facie includible in the transaction value under Section 4(3)(d) of the Central Excise Act, 1944, and whether waiver of pre-deposit was warranted.

Analysis: The excess amount recovered towards transit insurance was found to have been paid by the buyers in connection with the sale. On that basis, the amount was treated as prima facie falling within the scope of transaction value. As no sufficient ground for waiver of pre-deposit was made out, conditional relief was granted only to the extent directed in the order.

Outcome: The application was disposed of with a direction to deposit the duty amount within the stipulated time, and waiver of penalty was granted on compliance.

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