2016 (1) TMI 1054

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.... to declaring transport charges separately or not? 3. The appellant is a manufacturer of Sugar, Molasses and organic chemicals. The appellant cleared its product (organic chemicals) from the factory gate on payment of duty. In some cases, particularly sale of organic chemicals, the appellant delivered the chemical sold, in their own Tankers. Pursuant to the raising of Excise invoice, where the appellant is required to deliver in their own tanker, the appellant raises a separate transport bill bearing the name of buyer as mentioned, Excise Invoice no. as mentioned, the total duty as mentioned, Vehicle No. of the Tanker as mentioned for the particulars of the goods being delivered and the transport charges etc. All these information in the t....

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....en raised on the basis of CBE&C Circular dated 1.7.2002. Further, the Commissioner (Appeals) recorded the finding that the appellant's case is covered by Section 4(1)(a) and they were required to pay duty on the transaction value as defined under Section 4(3)(d) of the Act. Accordingly, it has been held that transport charges recovered separately in connection with sale of excisable goods are includible in the transaction value for the purpose of payment of duty. However, for the period from 1.3.2003 to 30.6.2003, he dropped the demand on the ground that under Rule 5 of the Valuation rules, the following portion is deleted:- "provided cost of transportation as charged to the buyer in addition to the price for the goods and shown separat....

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.... has been taken by the Tribunal in the case of National Peroxide Ltd. vs. Commissioner of Central Excise, Thane - I - 2013 (298) ELT 423 (Tri-Mum) and Commissioner of Central Excise, Kolhapur vs. Star Oxochem Pvt. Ltd. - 2013 (289) ELT 165 (Tri-Mum). 5. Learned DR relies on the impugned order and further states that as the transport charges have been raised and recovered separately, the same are includible. He states that any other amount which the buyer of the goods is required to pay to seller of the goods in respect of sale are to be included in the transaction value. He relies on the ruling in the case of Commissioner of Central Excise, Aurangabad vs. Roofit Industries Ltd. - 2015-TIOL-87-SC-CX, wherein the fact was that the assessee h....