2011 (2) TMI 1058

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....goods sold by the assessee. The assessee M/s.Kaycee Industries Ltd., Mumbai-78 are the manufacturer of excisable goods  falling under Chapter 84, 85, 90 & 91 of the Schedule to Central Excise Tariff Act, 1985. The assesses were recovering freight and transit insurance charges from their customers but  at the time of they were not including the said charges in the assessable value determined under Section 4 of the Central Excise Act, 1944. The case of the department is that in certain cases, the goods manufactured and sold by the assessee were insured by them from the factory gate of the destination and in such cases both the freight and insurance  charges, as mentioned in the purchase order were recovered by the assessee from....

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....sed a equivalent amount of penalty under Section  11AC of Central Excise Act, 1944 along with interest at the appropriate rate on the duty adjudged by the order dated 11/04/2003. 4. The party  preferred an appeal before the Commissioner (Appeals) and the Commissioner (Appeals) vide impugned order set aside the order of the lower adjudicating authority and allowed the appeal filed by the party.  The Commissioner  (Appeals) inter-alia  observed that the terms of sale were 'ex-works' as evidenced from the purchase order and this was completely ignored by the lower adjudicating authority. Merely because the assessee had arranged the transport and had taken out a transit insurance policy, it cannot be concluded that ....