2023 (10) TMI 163

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....pearing for the appellant pointed out that they were manufacturing certain material used in erection of towers and for extraction of petroleum fuels. Learned chartered accountant pointed out that one purchase order No. HSBR/ MX7/7410470 dated 26.09.2012 was obtained by them on FOR basis and the price quoted by them to the buyers was inclusive of freight charges and therefore, no freight was charged separately from the customer. He pointed out that the audit officers pointed out that in purchase order No. 1J/MW4/7496665 dated 31.07.2014 and 17/MXU/7461031 dated 19.06.2003, the price was quoted separately for the goods and for freight. The audit officers observed that the other terms and conditions in the purchase order dated 26.09.2012 and t....

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....hus, is crystal clear. It is to be seen as to whether as to at what point of time sale is effected namely whether it is on factory gate or at a later point of time, i.e., when the delivery of the goods is effected to the buyer at his premises. This aspect is to be seen in the light of provisions of the Sale of Goods Act by applying the same to the facts of each case to determine as to when the ownership in the goods is transferred from the seller to the buyer. The charges which are to be added have put up to the stage of the transfer of that ownership inasmuch as once the ownership in goods stands transferred to the buyer, any expenditure incurred thereafter has to be on buyer's account and cannot be a component which would be included ....

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....eciated by the CESTAT. 16. As a result, order of the CESTAT is set aside and present appeal is allowed restoring the order passed by the Adjudicating Authority." The order-in-original compares the three contracts and holds that the terms and condition of all the contracts are identical except for the fact that the price quoted in contract dated 19.06.2013 and 31.07.2014 mentioned the freight charges separately. Following are the details of the three contracts: Sr No PO No./ Date Terms of Sale Nature of Sale 01 HSBR/MX7/7410470 dated 26.09.2012 FOR/ Door Delivery Price quoted was inclusive of freight charge. 02 IJ/MXU/7641031 dated 19.06.2013 FOR/ Door Delivery Price quoted was excluding freigh....