2001 (1) TMI 546 - AT - Central Excise

Appellate Tribunal decision: Loading charges included in assessable value, EGEAF and JPC charges excluded.

The Appellate Tribunal CEGAT, Chennai allowed the appeal in part, deciding to include loading charges incurred within the factory premises in the ... Inclusion of EGEAF and JPC in assessable value - Loading charges incurred within factory premises treated as part of exworks/assessable value - Assessable value - Binding effect of Larger Bench decisionInclusion of EGEAF and JPC in assessable value - Assessable value - Binding effect of Larger Bench decision - EGEAF and JPC collected over and above the exworks price are not to be included in the assessable value. - HELD THAT: - The Tribunal observed that the question whether EGEAF and JPC collected over and above the exworks price are includible in assessable value is governed by the Larger Bench decision in SAIL v. Collector of Central Excise, Bhuvaneswar (2000 (119) E.L.T. 249 (TLB)), which covers the issue. Applying that binding precedent, the Tribunal concluded that the view of the appellate authority (which had adopted the contrary position) could not be sustained and therefore set aside that view. [Paras 3, 4]Appellants' contention accepted; EGEAF and JPC not includible in assessable value and the appellate authority's contrary view is set aside.Loading charges incurred within factory premises treated as part of exworks/assessable value - Assessable value - Loading charges incurred up to the point of removal of the goods from the factory (i.e., within factory premises) are to be included in the exfactory price for assessable value purposes. - HELD THAT: - The adjudicating authority had held, and the appellate authority had confirmed, that loading charges incurred within the factory premises form part of the exfactory price and therefore must be included in the assessable value (as recorded in para 12.2 of the adjudicating order and affirmed on appeal). On review, the Tribunal found no infirmity in that conclusion and agreed with the approach adopted by the authorities below. [Paras 4]Loading charges incurred within the factory premises are includible in the exfactory price and hence in the assessable value; the view of the authorities below is upheld.Final Conclusion: Appeal partly allowed: the Tribunal upholds inclusion of loading charges incurred within the factory premises in the exfactory/assessable value, but sets aside the appellate authority's view insofar as EGEAF and JPC are concerned, holding that those levies are not to be included in the assessable value. The Appellate Tribunal CEGAT, Chennai considered the inclusion of Engineering Goods Export Assistance Fund (EGEAF) and Joint Plant Committee Cess (JPC) in the assessable value of iron and steel items cleared by M/s Visakhapatnam Steel Plant. The Tribunal decided to include loading charges incurred within the factory premises in the assessable value but set aside the inclusion of EGEAF and JPC charges. The appeal was partly allowed.