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of <h1>Tribunal excludes freight charges from assessable value, overturns Commissioner decision, reinstates Assistant Commissioner's Order-in-Original.</h1> <h3>M/s Rekan Extrusions (P) Ltd. Versus Commissioner of Excise, Lucknow</h3> The Tribunal held that freight and inspection charges should not be included in the assessable value of goods. It overturned the Commissioner (Appeals) ... Valuation - includibility - whether freight, insurance and inspection charges will form part of the assessable value? - Held that: - it is an admitted fact that freight and inspection charges have been separately charged in the invoice - the Assistant commissioner was correct in holding that the freight and inspection charges are not includible in the assessable value - appeal allowed. Issues:Whether freight, insurance, and inspection charges form part of the assessable value.Analysis:The appeal dealt with the question of whether freight, insurance, and inspection charges should be included in the assessable value of goods. The appellant, a manufacturer of PVC Pipes, had not included these charges in the assessable value while calculating the duty payable. The revenue contended that these charges should be part of the assessable value, as they were not included in the invoices. A show cause notice was issued demanding duty for the period in question. The Assistant Commissioner initially dropped the demand based on a Tribunal ruling, which was later overturned by the Supreme Court in a different case. The revenue appealed to the Commissioner (Appeals), who allowed the appeal based on another Supreme Court ruling. The appellant argued that the transportation charges should not be included in the assessable value as per the Sale of Goods Act and Central Excise Act.The Tribunal considered the arguments presented by both sides and examined the records. It noted that the freight and inspection charges were separately charged in the invoice. The Tribunal held that these charges should not be included in the assessable value, agreeing with the Assistant Commissioner's decision. Therefore, the Tribunal set aside the Order-in-Appeal and reinstated the Order-in-Original passed by the Assistant Commissioner. The appeal was allowed with consequential benefits, if any.
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