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Issues: (i) Whether bank charges were deductible from the assessable value under Section 4 of the Central Excises Act, 1944; (ii) Whether clearing and forwarding charges were deductible from the assessable value under Section 4 of the Central Excises Act, 1944.
Issue (i): Whether bank charges were deductible from the assessable value under Section 4 of the Central Excises Act, 1944.
Analysis: The Tribunal followed the Larger Bench ruling that bank charges or collection charges are not deductible while determining assessable value under Section 4. The earlier order allowing exclusion of such charges was therefore inconsistent with the settled position.
Conclusion: Bank charges are not deductible from the assessable value and the Revenue succeeds on this issue.
Issue (ii): Whether clearing and forwarding charges were deductible from the assessable value under Section 4 of the Central Excises Act, 1944.
Analysis: The Tribunal relied on its earlier consistent view, supported by the cited precedents, that clearing and forwarding charges are excludible from assessable value under Section 4. The order granting deduction of these charges was therefore sustainable.
Conclusion: Clearing and forwarding charges are deductible from the assessable value and the assessee succeeds on this issue.
Final Conclusion: The order was modified to deny deduction for bank charges while upholding deduction for clearing and forwarding charges, resulting in partial relief to both sides.
Ratio Decidendi: Under Section 4, bank charges are includible in assessable value, whereas clearing and forwarding charges are excludible.
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