TaxTMI 
TaxTMI 
2006 (6) TMI 410
X X X X Extracts X X X X
X X X X Extracts X X X X
....fficers carried out investigations after visiting the premises of the appellants. The officers carried out the verification of the physical stock of the finished goods lying in the factory premises. There was a shortage of 5569 Nos. of various sizes of PVC pipes and there was also excess of 5115 Nos. of certain other varieties of PVC pipes. Statements of Shri L. Ramesh Kumar, Plant Manager and T.R. Maruti Prasad, Despatch Assistant had been taken. A show cause notice dated 13-2-2003 was issued proposing confiscation of excess stock. Further investigations were carried out and statements of Shri P. Ramesh, Transport Manager, T.R. Maruti Prasad, Despatch Assistant and Rajendra Prasad, Accounts Manager were recorded. Follow-up action was taken....
X X X X Extracts X X X X
X X X X Extracts X X X X
....R appeared for the Revenue. 3. The learned advocate pointed out that the amount of Rs. 19,33,239/- has been demanded on account of the freight charges received from the customers over and above the value at which they have sold pipes at the depots. The appellants transport the final products to the customers. In the case of gate sales and sales effected from depots, there are many decisions of the Tribunal holding that transportation charges are not includable in the assessable value. The Adjudicating Authority failed to notice that the cost of transportation is a cost relating to post-removal activity and since, the appellants have paid the duty on actual cost of transportation, the question of paying duty on excess collection of rat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he premises of the dealer of the appellant's unit to its customers. Shri Rajendra Prasad, Manager Accounts has filed an affidavit on this point. It was further submitted that the charges collected by the appellants towards the transportation are not retained by them. They have filed an affidavit along with the actual depot invoices. The accounts for the relevant period has been scrutinized by a Chartered Accountant and he has given a certificate to the effect that the transportation charges cover the expenditure incurred for transport from the premises of dealers to their customers. This payment has been paid to M/s. Nandi Transports. These facts were not before the Original Authority. In the interest of justice, we remand the entire matter....