2017 (9) TMI 343

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....Appellants are a 100% EOU and manufacturer of pig iron and scrap thereof falling under Chapter 74 of the Central Excise Tariff Act, 1985. They removed their products to Domestic Tariff Area (DTA) on payment of duty under Proviso to Section 3 of the Central Excise Act, 1944. As per the contract executed by the Appellants with their buyers, sometimes the goods are directly sold from the factory and in some other cases the goods are shifted to the nearby railway sliding if the buyers opt for such facility. In the second case, the Appellants charges from the buyers additional charges towards shifting of the goods upto the railway sliding and loading the same into railway wagons. The Revenue was of the view that, in such cases, the place of remo....

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.... point involved in the present case is: Whether loading charges recovered by the Appellants from the buyers of the goods is required to be added to the assessable value for the purposes of levy of Central Excise duty payable by the EOU in terms of Section 3 of the Central Excise Act, 1944? Section 3(1)(b)(ii) deals with the duties payable by 100% EOU at the time of clearing goods to DTA. The same is reproduced below for ready reference : "Section 3 - Duties specified in First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 to be levied. - (1) There shall be levied and collected in such manner as may be prescribed, - (a) xxxx xxxx xxxx (b) xxxx xxxx xxxx (ii) by a hundred per cent export-oriented undert....

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...., or as the case may be, for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale subject to such other conditions as may be specified in the rules made in this behalf : Provided that such transaction value in the case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalf : Provided ....