Transportation costs excluded from excisable value by appellate tribunal. Previous decision cited. Impugned order set aside.

The appellate tribunal, comprising SMT. ARCHANA WADHWA and MR. ANIL G. SHAKKARWAR, ruled on whether transportation costs recovered from customers should be included in the excisable value of the final product. Citing a previous decision, the tribunal held that such expenses are not part of the excisable value. Consequently, the tribunal set aside the impugned order, allowed the appeal, and granted relief to the appellant.

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Issues involved: Whether transportation cost recovered from customers is liable to be added in the excisable value of the final product.

Analysis:
The appellate tribunal, consisting of SMT. ARCHANA WADHWA, MEMBER (JUDICIAL) AND MR. ANIL G. SHAKKARWAR, MEMBER (TECHNICAL), heard the appeal where the main issue was the inclusion of transportation cost in the excisable value of the final product. The appellant argued that the transportation cost incurred by them for moving goods from the factory gate to depots, which was recovered from customers, should not be added to the excisable value. It was noted that both parties agreed that a similar issue had been addressed in the same assessee's case reported as 2018-TIOL-1679-Allahabad-Central Excise. The previous decision established that such transportation expenses cannot be considered part of the excisable value of the final product. Consequently, the tribunal followed the precedent and set aside the impugned order, allowing the appeal and granting consequential relief to the appellant. The judgment was dictated and pronounced in open court by SMT. ARCHANA WADHWA.

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