2011 (6) TMI 638

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....ondents are manufacturers of HDPE/PP Bags and clearing the same on payment of excise duty at their factory gate. A show-cause notice was issued to the respondents proposing recovery of differential duty on the ground that the sale price of the respondents to M/s Zuari Cement Ltd. showed value and Rs.0.05 per bag towards freight as per the terms and conditions of the relevant purchase order and goo....

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.... of the Revenue submits that in this case the Commissioner (Appeals) has not considered the new Valuation laws w.e.f. 1.7.2000, wherein as per Section 4, the valuation of the goods needs to be done on transaction value. In this case, in the invoices, the respondents have shown transportation charges on equalized basis. Therefore, the respondents are liable to pay Central Excise duty on freight ele....

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....ately. As per new Valuation Rules, which came into force w.e.f. 1.7.2000, if the assessees are clearing the goods at their factory gate the transportation cost is not to be includable. In this case, it is not disputed that the respondents have cleared the goods at their factory gate and charged transportation cost separately. Further as the Commissioner (Appeals) has observed, the department has n....