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of <h1>Handling charges recovered from customers not includible in assessable value for excise duty</h1> <h3>Lubi Submersibles Limited Versus Commissioner of C.E. -Ahmedabad-ii And Lubi Industries Llp Versus Commissioner of C.E. -Ahmedabad-ii</h3> Lubi Submersibles Limited Versus Commissioner of C.E. -Ahmedabad-ii And Lubi Industries Llp Versus Commissioner of C.E. -Ahmedabad-ii - TMI Issues:The issues involved in the judgment are whether handling charges recovered by the appellant are includible in the assessable value for charging excise duty and whether pre-delivery inspection charges should be included in the assessable value as per the Central Excise Act.Handling Charges Issue:The case involved M/s. Lubi Submersibles Ltd & M/s. Lubi Industries LLP charging handling charges from buyers but not including them in the assessable value for excise duty payment. The department issued show cause notices for duty demand, which were confirmed by the Adjudicating Authority. The appellant argued that handling charges should not be included based on various judgments, including the Supreme Court's decision in Accurate Meters Ltd. The Tribunal referred to a similar case where handling charges were held not includible in the assessable value, following Supreme Court and CESTAT judgments. Consequently, the demand related to handling charges was set aside, and the appeals were allowed.Pre-Delivery Inspection Charges Issue:The department contended that pre-delivery inspection charges should be included in the assessable value as per the Central Excise Act and a board circular. However, the Commissioner (Appeals) set aside the duty demand related to pre-delivery inspection charges. The Tribunal referred to a judgment involving identical facts where it was held that charges shown separately in invoices cannot be included in the assessable value. Following this precedent, the Tribunal set aside the demand related to pre-delivery inspection charges, allowing the appeals.Conclusion:The Tribunal found that handling charges and pre-delivery inspection charges should not be included in the assessable value for charging excise duty, based on established legal principles and precedents. The impugned orders were modified accordingly, and the appeals were allowed.
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