2014 (5) TMI 678

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.... not accept Commissioner (Appeals)'s order and have came in appeal before the tribunal. 2. To appreciate the issue, it is necessary to go through the brief facts of the case. The appellants manufactured various varieties of copper wires classifiable under chapter 74 of the first schedule to the Central Excise Tariff Act, 1985. It was alleged by the Revenue through show cause notices dated 19.8.2003 and 17.11.2007 based on records that the appellants had entered into contracts with their respective buyers for delivery of goods at the agreed prices on FOR destination basis, but the freight charges were not shown in the respective invoices. The appellants raised separate bills/ invoices showing freight therein. However, it was alleged tha....

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....t absolute but conditional and was subjected to fulfilment of laid requirements. Deductions of transportation were available to the goods of actual cost of transportation.     (c) Commissioner (Appeals) has also not taken into consideration the fact that equalized freight was not actual transportation cost and was accordingly excluded from the assessable value of the goods.     (d) It also stated that the Commissioner (Appeals) has not taken into consideration the Board's circular F.No.354/1/2008-TRU dated 30.6.2008 where it has been clarified that exclusion is permissible only for cost of transportation so charged from his buyer and if there was a system pricing and sale of unit price included and collec....

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....oner of Central Excise v. Accurate Meters Ltd., 2009 (235) E.L.T. 581 (S.C.) considered a similar situation wherein the goods were supplied by the assessee to the State Electricity Boards and two separate contracts were entered into, one for sale of meters and another for transportation and transit insurance thereof. As per the terms of the contract, the assessee was bound to transport the goods from the factory-gate to the place of State Electricity Boards at the rates specified in the tender. In the said case the Apex Court held that the place of removal remains the factory-gate and the cost of transportation from the place of removal to the place of delivery cannot be included in the assessable value even though the cost of transportatio....