2002 (5) TMI 371

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....or the purpose of assessment to Central Excise duty on ad valorem basis. The appellant claimed refund of part of duty originally paid on the ground that duty had been paid on the gross value of the goods which included freight. It was claimed that freight was not to form part of the assessable value, and the duty already paid which is attributable to the amount of freight was to be refunded to the appellant. This claim has been rejected in the impugned order on the ground that the appellant's price at the factory gate was inclusive of freight and other elements and no deduction was permissible from the sale price at the factory gate. The impugned orders have placed reliance on the order of this Tribunal in the case of Escorts JCB Ltd. v. CC....

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....for delivery F.O.R. Ex-works, "but freight and insurance charges were to be borne by the seller". It was also pointed out that in all these cases the appellant booked goods with public transport authorities with the buyer as the consignee. It is the appellant's contention that once the goods are handed over to the transporter, he had no claim on the goods and sale and delivery have taken place on ex-factory basis, warranting the adoption of ex-factory price of the goods as assessable value. 4. As against the above submissions of the appellant, learned SDR pointed out that once the prices are "for delivery FOR ex-works" there is no question of freight forming part of the sale price at the factory gate. He, therefore, submitted that t....

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....es that price is "for delivery F.O.R. Ex. Works" it also clarifies that but P & F, freight and insurance charges are to be borne by you. The prices are exclusive of Inland Transit Insurance etc. However, same are to be borne by you. From this it is clear that freight and other elements mentioned in the contract are to be borne by the seller. Therefore, the invoice prices indicated the element of freight. From the receipts produced by the appellant, it is clear that they were bearing the cost of transport. No additional payments were received over and above invoice price towards freight. Thus, there could be no doubt that the invoice price included freight. 7. From the documents covering the sale it is noted that the transfer goods t....