1992 (3) TMI 183

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....sit risk insurance from their customers during the period 17-3-1985 to 31-7-1987. Following a demand-cum-show cause notice issued by the Superintendent of Central Excise, Varanasi alleging that the transit risk charges formed a part of the assessable value of the goods, the Assistant Collector passed an order demanding Central Excise duty amounting to Rs. 3,852.61. Being aggrieved by the order passed by the Assistant Collector, the respondents filed an appeal before the Collector (Appeals) who in the impugned order held that charges recovered by the respondents on account of transit risk insurance could not be connected with the manufacturing cost or manufacturing profit and on this account this could not be deemed as forming a part of the ....

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....ot form a part of the assessable value. He added that there was no force at all in argument advanced by the lower authorities that the respondents not being an Insurance Company the charges on account of transit risk insurance would form a part of the assessable value. He stated that there was no law prohibiting a manufacturer to undertake the insurance of his own products. In support of his contentions he cited the following decisions of the Tribunal :- (i) Order Nos. E/136-137/87-A dated 19-2-1987 in the case of M/s. Hyderabad Asbestos Cement v. CCE, Hyderabad. (ii) Order Nos. E/1084 to 1086/90-A dated 13-7-1990 in the case of CCE, Hyderabad v. M/s. Hyderabad Asbestos Cement Products Ltd. 4. We have examined the records of the ca....