CESTAT Bangalore rules in favor of appellants, excluding excess freight charges from duty liability.

The CESTAT Bangalore allowed the appeal, ruling in favor of the appellants, who contested the inclusion of excess freight charges in the assessable value of goods for duty liability. The tribunal held that excess freight profits should not be subject to duty, overturning the Commissioner's decision. As a result, the demand for excise duty and interest was not upheld, and penalties were not imposed. The decision was rendered on April 17, 2009.

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The appellate tribunal CESTAT, Bangalore, consisting of Members T.K. Jayaraman and M.V. Ravindran, heard an appeal against an order passed by the Commissioner of Customs & Central Excise, Hyderabad-III Commissionerate. The appellants were accused of not discharging duty liability for specific periods due to excess freight charges collected. The Commissioner confirmed the demand for excise duty and interest, and imposed penalties. The appellants contested the order, arguing that the excess freight should not be included in assessable value of goods, citing the Baroda Meters case and other relevant case laws. The tribunal, after careful consideration, ruled in favor of the appellants, stating that excess freight profits should not be subject to duty. The appeal was allowed, and interest and penalties were not imposed. The decision was delivered on April 17, 2009.

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