TaxTMI 
TaxTMI 
2014 (4) TMI 606
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.... 0.25% of the value of the goods from their customers and in addition to this, recovered transit insurance charges @ 0.2% of the value of the goods. Beside this, they recovered freight charges on the actual basis. All these charges were being recovered by issuing debit notes. The point of dispute is as to whether these charges were includible in the assessable value of the goods or not. The Department was of the view that dharmada charges, insurance charges and the freight charges being charged on the actual basis were includible in the assessable value of the goods. On this basis, two show cause notices dated 31/7/2001 and 05/4/2002 were issued to the appellant for recovery of allegedly short paid excise duty amounting to Rs. 1,81,107/- an....
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....me had been charged separately by debit notes and this amounts to charging separately for the freight and transit insurance, that in any case since the transaction value of the goods is required to be at the time and place of removal and there is no dispute that the sale of the goods was from the factory gate, the freight and insurance charges cannot be included in the assessable value, that as regards dharmada charges, the same is not includible in the assessable value in view of judgment of the Tribunal in the case of Mohan & Co., Madras vs. CCE, Madras reported in 1987 (30) E.L.T. 624 (Tribunal), the civil appeal against which was dismissed by the Apex Court vide judgment reported in 1997 (91) E.L.T. A232 (S.C.), that same view had been ....
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....CE reported in 1997 (90) E.L.T. 502 (Tribunal) on this issue and overruled the judgment of Larger Bench of the Tribunal in case of SAIL vs. CCE, Bhubaneswar reported in 2000 (119) E.L.T. 249. 5. We have considered the submissions from both the sides and perused the records. 6. As regards, the inclusion of freight being charged by the appellant from their customers on actual basis, and transit insurance being charged @ 0.2% of the price in the assessable value, we find that since there is no dispute that the appellants sales were at the factory gate and during the period upto 30/6/2000, the assessable value was the normal price at the time and place of removal and during the period from 01/7/2000, the assessable value is the transacti....
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.... would be includible in the assessable value and in this judgment has overruled the judgment of the Larger Bench of the Tribunal in case of SAIL vs. CCE, Bhubaneswar reported in 2000 (119) E.L.T. 249 and also the Tribunal's judgment in case of Mohan & Co., Madras vs. CCE, Madras (supra). The Apex court's judgment in the case of CCE vs. Panchmukhi Engg. Works (supra) is based its earlier judgment in the case of Tata Iron & Steel Co. Ltd. vs. CCE, Jamshedpur (supra). In our view, since the Apex court in its judgment dated 24/10/2002, in the case of Tata Iron & Steel Co. Ltd. vs. CCE, Jamshedpur (supra), after considering its earlier judgment in the case of Mohan & Co., Madras vs. CCE, Madras (supra) and overruling it has taken a view that dha....