2013 (12) TMI 165

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.... Archana Wadhwa: Being aggrieved with the order passed by the Commissioner, Revenue has filed the present appeal. 2. We have heard ld. DR for the Revenue and nobody appeared for the respondent. 3. The respondent is engaged in the manufacture of glass sheets. The dispute in the present appeal relates to as to whether the deduction of equalized freight incurred by the respondent is requir....

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.... freight than the actual expenses on account of freight cannot be said to have any nexus with the value of the excisable goods. Revenue in the present case has not alleged or produced any evidence that such excess freight recovery was on account of diversion of the value of the glass sheets. As such we find no infirmity in the impugned order of the Commissioner while dropping the demand on the abo....

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....en baton. This is also loosely called as jam packing. The expenditure incurred in this regard is called Laffa Charges in the glass industry. The expenditure incurred on this account cannot form part of the value, as it is not a part of primary packing. The Laffa charges appropriately form part of transportation charges. This jam packing is done to avoid breakage of the glass sheets in transit due ....

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...., jam packing of boxes containing glass sheets (a highly fragile item) is done only to protect the glass sheets from damage while in transit. Accordingly, I hold that noticees are entitled for deduction of Laffa charges in view of the above judgements. 7. As is clear from the above, by allowing deduction on account of Jam packing charges, he had relied upon the precedent decision of the Tribuna....