TaxTMI 
TaxTMI 
2021 (8) TMI 759
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....s are engaged in manufacture of Transformers. The appellant entered into contracts with various buyers for supply of transformer. The said contracts also contains a pre-determine price as the cost of transportation and delivery of goods to the buyers premises. The actual cost of transport is not exactly the same as that mentioned in the contract. There is a difference between the price of transportation contracted and actual cost of transportation/ delivery. The Revenue has identified the instances where the actual cost of transportation is less than the cost of transportation contracted by the appellant with the buyer. Revenue has sought to include in the assessable value the said excess of freight collected over the actual freight. 2.1 L....
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.... at the rates specified in the tender. Prior thereto, the State Electricity Board Authorities were to make inspection of the goods. 13. In the case of Associated Strips Ltd. v. Commissioner of Central Excise, New Delhi reported in [2002 (143) E.L.T. 131], the Tribunal distinguishing its earlier decision in Commissioner v. Prabhat Zarda Factory Ltd. [2000 (119) E.L.T. 191, held : "18. In the case of Associated Strips Ltd. the goods manufactured are inspected by the representative of the buyer (Electricity Board) and thereafter the manufacturer had to mark the name of the buyer on the poles before they are handed over to the transporter. So also in the case of Mauria Udyog Ltd. the LPG cylinders manufactured by the appellant are inspected....
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.... that in the case of Mauria Udyog Ltd. there is no insurance taken by the seller." 14. The said decision of the Tribunal has been approved by this Court in M/s. Escorts JCB Ltd. (supra), stating : "5. The contention is that the fact that the assessee arranged for the transit insurance would in no way lead to an inference that the ownership in the goods was retained by the assessee during the period of the transit until the delivery of the goods at the place of the buyer. The terms and conditions of the sale are clear that the sale is Ex-works at Ballabgarh, Haryana. The payment is to be made before despatch of the goods from the factory premises. The machinery, handed over to the carrier/transporter is as good as delivery to the buyer i....
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....o of the decisions in M/s. Associated Strips Ltd. (supra) as also M/s. Escorts JCB Ltd. (supra). 15. In that view of the matter and for the reasons stated hereinbefore, we have no doubt in our mind that the authority in appeal as also the Tribunal were correct in their view that the amount claimed by way of transportation charges and insurance cannot be considered for determining the value of the electric meters supplied." 5. We find that in the instant case too a perusal of the contracts produced before us shows that it contains separate clauses for the cost of goods sold and the cost of transportation. We also find that the representative contract produced by them in respect of Rajasthan Rajya Vidyut Prasaran Nigam Limited in para 5 th....