TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 709
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....c & Chemicals Ltd, against demand of Central Excise duty of Rs. 5,25,70,268/- alongwith equal penalty and applicable interest confirmed by the learned Commissioner, Central Excise, Ranchi, for the period from April 2004 to September 2008 vide Order dated 14.05.2012 which is impugned herein. 2. The appellant in this case is engaged in the manufacture of Caustic Soda Lye, Liquid Chlorine and allied goods on which central excise duty is being paid. Dispute was raised by the Central Excise Department on the ground that the appellant's contracts with its buyers were at FOR prices and the possession of goods after clearance from the factory was given to buyers only at destination and that sale in such cases has taken place when delivery was give....
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....ld not sustain in view of the legal position settled by the Apex Court. He also placed reliance on the following decisions of the Tribunal : * Aditya Birla Insulators Ltd vs. CCE Kolkata 2008 (226) ELT 377 (Tri-Kol) * CGST, Alwar vs. PurnaPlast Pvt Ltd. 2019 (3) TMI 848 -CESTAT-Delhi * Sharda Ceramics Pvt Ltd vs. CCE 2018 (8) TMI 732 - CESTAT - Delhi * Jost Engineering Co. Ltd vs. CCE 2017 (7) GSTL 344 (Tri- Mum) * Associated Strips Ltd. vs. CCE 2002 (143) ELT 131 (Tri-Del) As a matter of alternative argument, the learned Advocate also submitted that when the delivery of goods to the carrier / transporter is as good as delivery to the buyer in terms of Section 39 of the Sale of Goods Act, taking support from the Apex Court's deci....
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.... considering the facts appearing in such case. He accordingly submitted that when the goods are being delivered and sold at the buyer's premises, the freight amount cannot be excluded from the assessable value. He also relied on the decision of the Tribunal in the case Nalari Ferro Alloys Pvt. Ltd vs. CCE, Shillng vide Final Order n. 77145 /2018 dated 14.12.2018. On the basis of aforesaid contentions, he prayed that the appeal filed by the assessee be rejected being devoid of any merit. 6. Heard both sides through video conferencing and perused the appeal records. 7. The issue before us is whether the appellant can claim exclusion of the freight amount from arriving at the assessable value for the purpose of payment of central excise duty....
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....is very important and makes it clear that a depot, the premises of a consignment agent, or any other place or premises from where the excisable goods are to be sold after their clearance from the factory are all places of removal. What is important to note is that each of these premises is referable only to the manufacturer and not to the buyer of excisable goods. The depot, or the premises of a consignment agent of the manufacturer are obviously places which are referable only to the manufacturer. Even the expression "any other place or premises" refers only to a manufacturer's place or premises because such place or premises is stated to be where excisable goods "are to be sold". These are the key words of the subsection. The place or pre....
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....at order that freight charges must be included as the sale in the present facts took place at the buyer's premises is incorrect. Further, for the period 1-7-2000 to 31-3-2003 there will be no extended place of removal, the factory premises or the warehouse (in the circumstances mentioned in the Section), alone being places of removal. Under no circumstances can the buyer's premises, therefore, be the place of removal for the purpose of Section 4 on the facts of the present case.... 32. It will be seen that this is a decision distinguishing the Escorts JCB's case on facts. It was found that goods were to be delivered only at the place of the buyer and the price of the goods was inclusive of transportation charges. As transit damage on the ....
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.... meet the test of law and hence not legally sustainable. In so far as the decision of the Tribunal in the case of Nalari Ferro Alloys Pvt. Ltd. (Supra) relied by the learned Authorized Representative for the department, we note that the said case pertained to demand proceedings initiated after sanctioning of refund by the lower authorities in terms of Notification No. 32/1999-CE by considering the law and precedents available at that point of time. The facts in that instant case, in essence, were that the assessee had paid the duty by including freight amount. Considering the judgment of the Hon'ble Supreme Court in Ispat Industries Case (supra), the duty paid on freight was legally not payable. So the duty amount paid legally as well as th....