Forwarding charges in own-vehicle transport not includible in assessable value when the show cause notice lacked the relevant allegation.

Forwarding charges recovered for transport of goods in the assessee's own vehicles were held not to be includible in the assessable value for central excise duty where the show cause notices did not allege that the vehicles were used for any purpose other than carrying excisable goods. The invoices separately showed the price and forwarding charges, and the lower authorities relied on a doubt that the vehicles might also have been used for other purposes. That basis was outside the notices, which only referred to fuel and maintenance costs. On that footing, the demand could not be sustained.

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Issues: Whether the forwarding charges recovered in respect of transport of goods by the assessee's own vehicles were includible in the assessable value for central excise duty when the show cause notices did not allege that the vehicles were used for any purpose other than transporting excisable goods.

Analysis: The goods were transported from the factory to the buyers' premises in the assessee's own vehicles and the invoices separately showed the price and forwarding charges. The lower authorities proceeded on a doubt that the vehicles may have been used for other purposes as well, but that basis was not part of the show cause notices. The notices only asserted that fuel and maintenance cost of the vehicle had to be included in the assessable value. In the absence of such an allegation in the notices, there was no justification for sustaining the demand.

Conclusion: The forwarding charges were not liable to be included in the assessable value on the basis of the notices issued, and the demand was unsustainable.

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