TaxTMI 
TaxTMI 
TaxTMI 
2007 (1) TMI 316
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....cooters manufactured and sold by the appellant after payment of duty. The period of dispute is Jan. '84 to May '87. Under the impugned order, the Commissioner has found that the cost, realisations in respect of nine items were required to form part of the assessable value of scooters and on account of the exclusion of these items, non-payment of duty of about Rs. 30 lakhs took place. We may read the Commissioner's findings : "In view of the above facts the various demands confirmed on different grounds are summarised below : S.No. Grounds Duty confirmed (Rs) 1. Excess Recovery of Insurance Rs. 6,31,096.88 2. FSE Salary Rs. 5,65,219.94 3. Forwarding charge Rs. 2,50,177.37 4. Excess Freight Recovery Rs. 3,847.75 5. Monsoon P....
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....n is that this recovery is towards costs incidental to the despatch of the scooters to outstation buyers and does not relate, in any way, to delivery on ex-factory basis. It is noted that this charge is collected over and above the ex-factory sale price. It is well-settled that all costs incurred up to delivery at the factory gate are required to form part of assessable value; but not costs beyond the factory gate. Since the forwarding charges in the present case are in relation to freight forwarding, it cannot be part of the assessable value. Thus, there is merit in the appellant's contention on this issue also. 6. In regard to 'F.S.E. Salary' it is being explained that this is contribution made by the company towards the cost of Ser....
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....o pack scooters before making delivery at the factory gate. 8. In regard to 'Oil Supply' it is being explained that the supply takes place at the time of servicing of the scooter at the dealers end and not at the time of clearance of the scooter from the factory. The submission is that the measure of assessable value under the Act is the ex-factory sale price and therefore, cost of supplies made subsequent to sale at the stage of servicing, maintenance etc. can not form part of assessable value. It is to be noted that during the relevant period, the normal price at the factory gate was the measure for the purpose of assessment under Section 4(1) of the Central Excise Act. Since the supply of this oil takes place much after the clearan....
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....ration of the scooters and therefore, it cannot form part of the assessable value. We find merit in this contention also in as much as the sale price of scooters was not linked to the cost of the form. The cost of the form is a separate item altogether, like the cost of similar forms (stationery items) like money order forms. The sale of the booking form was a separate sale of a different item from scooter as not all purchasers of forms need or would book the scooter. 11. A demand of over Rs. 9 lakhs is on a finding that 'retention charges' collected by the appellant should be added to the sale price for the purpose of assessment. The factual position relating to collection of this charge is that scooters are sold at the time of their....