TaxTMI 
TaxTMI 
2008 (11) TMI 230
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....ppeal. Both the appeals are being taken up for final disposal. 2. The short question arising for consideration in these appeals is whether the loading charges incurred for clearance of goods from the respondent's factory during the period from April, 1996 to November, 2001 were to be included in the assessable value of the said goods. It is on record that the expenses of loading of the goods within the factory premises and its transportation to, and unloading at, the buyer's premises were borne by the transporters on behalf of the buyers. The department issued show-cause notice to the assessee-company invoking the extended period of limitation under the proviso to Section 11A(1) of the Central Excise Act, 1944 alleging that the expenses in....
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....ibunal in the case of Albright & Wilson Chemicals India Ltd. v. Commissioner of Central Excise - 2007 (214) E.L.T. 313 (Tri.-Mumbai) wherein the loading expenses incurred by the buyer's contractor were held to be not includable in the assessable value of the goods. 4. After considering the submissions, we note that, in the case of AIMS Oxygen Pvt. Ltd. (supra), it was held that the loading charges incurred in the factory before clearance of the goods were to be included in the assessable value of the goods in the light of the Supreme Court judgments in Bombay Tyre International - 1983 (14) E.L.T. 1896 (S.C.) and Assistant Collector of Central Excise v. MRF Ltd. 1987 (27) E.L.T. 553 (S.C.). The decision in Bombay Tyre International case was....
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.... becomes entirely irrelevant. The cost of transportation from the factory gate to the place of delivery and transit expenses were not to be added to the wholesale price at factory gate for purpose of duty under the Act. In this case the price of the goods at the factory gate Visakhapatnam is known. It is clear from Section 4 that the delivery and collection charges have nothing to do with the manufacture as they are for delivery of the filled cylinders and collection of the empty cylinders. These charges have to be excluded from the assessable value. Insofar as the loading charges incurred for loading the goods within the factory are concerned, they are to be included in the assessable value, irrespective of who has paid for the same but th....