2017 (8) TMI 15

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....various petroleum products. They have installation at Mangalore where they receive indigenous petroleum products in bond. They have been clearing petroleum products by paying duty on the prices fixed by the Ministry. They have claimed deduction of freight charges from installation to the various depots and also claimed FDZ charges being the freight element built in the price for transporting the products from the installations to various retail outlets within the radius of 39 RTKM. Apart from sales to retail outlets operated by the dealers, the respondent makes supplies to company and company operated (COCO) retail outlet by paying the same price as that in the other retail outlet. Respondent collected license fee through invoice from deale....

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....are not includible in the assessable value and upheld the Order-in-Original with regard to COCO. Revenue has filed the appeal regarding the setting aside the demand of duty relating to FDZ charges and SSLF charges. 3.1. Heard both parties and perused records. The issue involved in the present appeal is whether the petroleum products cleared from warehouse to company owned and company operated outlets are to be valued in terms of Section 4(1)(b) of the Central Excise Act, 1944 read with Rule 7 of the Central Excise Valuation Rules. The case of the Department is that transfer from warehouse to COCO does not involve any sale and the sale transaction arises only from the COCO. Therefore the price at which the goods are sold from the COCO out....