TaxTMI 
TaxTMI 
2017 (3) TMI 1150
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....om depot/branches for the period 01/07/2002 to 31/03/2003 amounting to Rs. 13,65,825/- through debit notes which have not been included as the components while arriving at the assessable value as envisaged under Rule 5/Rule 7 of the Central Excise Valuation (Determination of price of excisable goods) Rules, 2000. A show-cause notice was issued alleging that the appellants have contravened the provisions of clause of sub-section 4 of Central Excise Act, 1944 read with Rule 5/7 of Central Excise Valuation Rules, 2000. The appellants have deliberately suppressed the facts from the department with an intention to evade Central Excise duty on above said freight charges. While deciding the said show-cause notice, the adjudicating authority confir....
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.... (AR) appearing on behalf of the Revenue reiterates the findings in the impugned order. He placed reliance on the judgement in the case of Siemens Ltd. - 2004 (176) ELT 299 (Tri-Mumbai). 4. We have carefully considered the submissions made by both the sides and perused the records. From the order-in-original as well as the order of the Commissioner (Appeals), we find that the demand was confirmed only on the ground that the sales depot of the appellant is the place of removal. Therefore, transportation from the factory gate upto the depot is not excludable from the assessable value. During the relevant period the definition of place of removal was as under: Section 4 (3) (c) : "place of removal" means - (i) a factory or any other place ....
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....s collected from the customers for transportation of goods from the factory gate upto the place of customer is not includable in the assessable value. Therefore, the findings of both the lower authorities is contrary to clear provisions of law on the inclusion/exclusion of transportation charges as discussed above. The very same issue has been considered by this Tribunal in the case of Andhra Pradesh Paper Mills Ltd. (supra) wherein the Division Bench of this Tribunal has clearly held that for the period from 01/07/2002 to 13/05/2003 there cannot be any demand on incidental charges like freight and insurance charges for clearance of goods from factory gate to depot. For the reason that the depot was absent in the definition of place of remo....