2010 (1) TMI 440

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....e, for the Respondent. [Order (Oral)]. - This is an appeal by the Department against the order of the Commissioner (Appeals) No. 196-CE/ALLD/2007 dated 10-12-2007. 2. None appears for the respondents in spite of notice. Heard the learned DR for the Department. 3.1 The relevant facts, in brief, are that the respondent is a manufacturer of speed de-natured spirit and ordinary spirit falling....

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....0/-, in excess from the buyers towards transportation cost which should be treated as part of the price of the "exempted product" namely, the rectified spirit. Accordingly, and amount of Rs. 25,252/- was sought to be demanded on the allegation that the party have contravened the provisions of Section 3 and Section 9(1)(b)of the Central Excise Act, 1944 read with Rule 8 of the Central Excise Rules,....

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....missions and perused records. The issue involves interpretation of Rule 6(3)(b) which during the relevant period read as under : "RULE 6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services. — (1) ………. (2) ………. (3) Notwithstanding anything contained in sub-rules (1) and (2), the manufacturer of goods or the provider of o....

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....learance from the factory, and thus the same cannot be included for the purpose of determining total price of the exempted goods. It has not been shown that the alleged excess freight collected by the respondents from the buyers of rectified spirit had any nexus with the price of the goods. The Commissioner (Appeals) has relied on the decision of the Hon'ble Supreme Court in the case of Baroda Ele....