Tribunal Rules Insurance Amount Not Part of Assessable Value, Grants Relief on Excise Duty Demand.

The Tribunal allowed the appeal against the Order-in-Appeal, which had upheld the duty demand on the insurance amount collected from customers. It concluded that the assessable value of goods should not include the insurance amount, referencing prior decisions in the appellant's case and a SC ruling in M/s Baroda Electric Meters Ltd. Vs CCE. The Tribunal determined that excise duty is a tax on the manufacturer, not on profits from transportation, granting the appellant consequential relief.

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Issues involved: Appeal against Order-in-Appeal upholding duty demand on insurance amount recovered from customers.

Summary:
The appeal was made against Order-in-Appeal No.599-CE/MRT-II/2011, where the Commissioner (Appeals) upheld the demand of duty on the insurance amount collected by the appellant from customers. The issue was whether the assessable value of cleared goods should be enhanced by the amount collected as insurance. The appellant argued that previous decisions in their own case supported their position. The Authorized Representative for the revenue reiterated the findings of the impugned order. The Tribunal found that the issue was settled by previous decisions in the appellant's own case and by a Supreme Court decision in M/s Baroda Electric Meters Ltd. Vs CCE 1997 (94) ELT 13 (SC). The Tribunal concluded that the duty of excise is a tax on the manufacturer, not on profits made by a dealer on transportation. Therefore, the appeal was allowed with consequential relief.

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