2014 (7) TMI 351

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....ise Tariff Act, 1985. They deliver the gases to their customers in their own specially designed tankers for which they charged their customers and as such freight charges are separately mentioned in the sale invoices issued by them to their customers. In course of audit of their records, it was found that during the year 2005-2006 to 2009-2010, the total amount recovered by the appellant from their customers towards freight was more than the expenses incurred by them on transportation and as such excess amount recovered from the customers towards freight was Rs. 92,26,000/-. The Department was of the view that this amount should form part of the assessable value of the gases sold. Accordingly, after issue of Show Cause Notice, the Jurisdict....

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....pleaded that the Appellants sales were at the factory gate, that the amount of freight was being shown separately in the invoices, that just because the gases have to be transported in the specially designed tankers and the appellant own a fleet of such tankers, the appellant arrange transportation for the gases to their customers premises, that there is nothing in the invoices or any other documents which is shows that the sale were on FOR destination basis, that when the sales were at the factory gate, there is no question of including freight charges in the assessable value of the goods sold, even if the freight amount charged by appellant from their customers is more than the actual expenses incurred in running of trucks, that in any ....

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....ctory gate to the customers premise is includible in the assessable value and this can be done only if sales are on FOR destination basis in the sense that during transit, the risk of the loss of goods or damage to the goods is of the seller- manufacturer and the ownership of the goods during transit is of the manufacturer and freight is integral part of the value of the goods. In this case, though both the Lower Authorities have given finding that sales were on FOR destination basis, no evidence in this regard has been disclosed. It is not the case of Department that the invoices themselves mention the sales as FOR sales or that the supply orders placed by the customers mention the supply of gases on FOR basis. In fact, the invoices show ....