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of <h1>Tribunal excludes transport charges from assessable value, affirms Collector's decision.</h1> <h3>COLLECTOR OF C. EX., BOMBAY Versus HALDYN GLASS WORKS</h3> COLLECTOR OF C. EX., BOMBAY Versus HALDYN GLASS WORKS - 1999 (110) E.L.T. 897 (Tribunal) Issues:Determining assessable value including transport, handling, and service charges.Analysis:The judgment involves four appeals by the Department concerning whether transport, handling, and service charges should be included in determining the assessable value of goods manufactured and cleared by the respondents. The Revenue argued that handling and service charges should be included, while the respondents contended that since the ex-factory gate price is assessable, additional expenses should not be added. The Advocate for the respondents referenced a Supreme Court decision stating that as long as the ex-factory price is ascertainable, it should be the basis for determining the assessable value, and other expenses should be ignored.The ld. Collector (Appeals) had given a clear finding that the expenses on service charges for recovering amounts due from customers on credit sales should not be part of the assessable value. Similarly, handling charges incurred for transportation of goods from the factory gate to the buyer's godowns should not be included as these are expenses borne by customers. The judgment emphasized that expenses incurred within the factory gate for handling goods after sales should not be deductible from the assessable value. The judgment concluded that transportation charges, handling charges, interest on credit sales, and service charges should not form part of the wholesale cash price of goods sold at the factory gate.The Tribunal found no infirmity in the ld. Collector (Appeals)'s order, stating that the issue regarding the expenses in question had been properly considered. Consequently, the appeals filed by the Department were dismissed, upholding the decision that the mentioned charges should not be included in determining the assessable value of the goods.
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