TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal denies Rectification Application on excisable goods assessable value, post-manufacturing expenses not deductible.</h1> <h3>VOLTAS LTD. Versus COMMISSIONER OF C. EX., HYDERABAD</h3> VOLTAS LTD. Versus COMMISSIONER OF C. EX., HYDERABAD - 2006 (205) E.L.T. 432 (Tri. - Bang.) Issues involved:Rectification of mistake arising from Final Order related to inclusion of expenses in assessable value of excisable goods.Analysis:The issue at hand involves a rectification application under Section 35C(2) of the Central Excise Act, 1944, regarding the Final Order passed by the Tribunal. The primary contention was the inclusion of various expenses in the assessable value of excisable goods. The appellant argued that post-manufacturing expenses incurred after the goods were removed from the factory gate should not be included. The Tribunal had allowed deduction towards equalized freight but upheld the inclusion of other expenses like depot costs, unloading charges, interest on stocks, and secondary packing. The appellant relied on Apex Court decisions such as Bombay Tyre International Ltd. and Madras Rubber Factory Ltd. to support their claim for deductions. The appellant contended that the Tribunal failed to consider the effect of these decisions on the claimed deductions, which were permissible as per the Apex Court rulings.The Tribunal, on the other hand, upheld the lower authorities' decision, stating that there was no mistake apparent on the face of the record. The Revenue pointed out a circular regarding the deduction of interest on receivables and emphasized that such deductions cannot be permitted if the interest is not charged over and above the sale price of the goods. The Tribunal reviewed the Final Order and observed that the expenses in question were disallowed based on the interpretation of Section 4 of the Central Excise Act as per the Bombay Tyre International Ltd. judgment. The Tribunal highlighted the importance of expenses related to marketability and value enrichment of the goods until the date of delivery, which should be included in the assessable value. The Tribunal concluded that the lower authorities were correct in disallowing the deductions based on the Apex Court decisions, and there was no mistake evident in the records. The Rectification of Mistake Application was rejected.In summary, the judgment addressed the issue of rectification of a Final Order concerning the inclusion of expenses in the assessable value of excisable goods. The appellant argued for deductions of post-manufacturing expenses, citing Apex Court decisions, while the Revenue supported the lower authorities' decision based on the interpretation of relevant legal provisions. The Tribunal analyzed the expenses in question in light of the Apex Court rulings and concluded that the deductions were not permissible as the expenses till the date of delivery were to be included in the assessable value. The Tribunal rejected the Rectification of Mistake Application, affirming the correctness of the original decision.
TaxTMI 
TaxTMI 
