TaxTMI 
TaxTMI 
2013 (9) TMI 492
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....d excise duty as per price mentioned in the invoices. The appellant however suppressed the information that he had recovered Rs. 22,02,603/- from the buyers as transmit insurance charge against transit insurance premium amounting to Rs. 6.17 lakhs paid by him. The Department was of the view that the appellant should have included the amount of transit insurance charge recovered in excess of the actual insurance charge premium paid in the transaction value of the goods cleared in terms of Rule 6 of Central Excise Valuation Rules. Accordingly, a show cause notice was issued to the appellant demanding duty of Rs. 1,98,184/- on the differential transaction value along with interest and penalty. 2. The appellant contested the show cause notice ....
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....ct appreciation of fact and law. Expanding on the argument, learned counsel for the appellant submits the adjudicating authority as also the appellate authority while confirming the demand and imposing penalty on the appellant have failed to appreciate that the appellant during relevant period had cleared the final product at factory gate. Meaning thereby that ownership of the goods stood transferred to the buyer at the factory gate. The appellant merely arranged for transit insurance on behalf of buyers and if he has made some profit in providing transit insurance service to the buyer, it has no bearing on assessable/transaction value of the goods sold. Therefore, it is contended that the authorities concerned have committed the grave erro....
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....s pressed for dismissal of the appeal. 8. We have considered the rival contentions and perused the record. In order to appreciate the rival contentions, it would be useful to have look upon the relevant provisions of law dealing with valuation of excisable goods for the purpose of charging excise duty. 9. Section 4(1) of the Central Excise Act, 1944 reads thus : SECTION 4. Valuation of excisable goods for purposes of charging of duty of excise. - (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall - (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the....
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....l referred to in sub-clause (iii) of clause (c), shall be deemed to be the time at which such goods are cleared from the factory; (d) "transaction value" means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sa....
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....f delivery was not the sole consideration for sale and the appellant with the aid of buyers have evaded excise duty by issuing invoices/bills showing lower transaction value and getting compensated by indirectly receiving the price in the guise of transit insurance charges. Thus in our view, the adjudicating authority as well as appellate authority were right in including the difference of the transit insurance charged actually paid by the appellant and the amount received by the appellant against transit insurance charges in the transaction value for the purpose of assessing excise duty, as such the impugned order cannot be faulted. 12. The judgment relied upon by the appellants in the matter of Baroda Electric Meters Ltd. (supra) is a sh....