2024 (4) TMI 325

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..../insurance charges for delivery at buyer's place in the transaction value. 1.1 Brief facts of the case are that the appellant entered in contract with IOCL, HPCL. As per the contract the appellant is responsible for delivery of goods to the destination of different location as mentioned in contract. The case of the department is that the freight/insurance charges collected by the appellant in addition to the price of the goods is includible in the transaction value and excise duty is chargeable on such freight/ insurance charges. Accordingly, two show cause notices were issued to the appellant and subsequently demand was confirmed by the Original Adjudicating Authority vide Order-in-Original dated 30.12.2015. Being aggrieved by the i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arately in the invoices as freight charges cannot be included in the transaction value. 2.2 He further submits that the demand for extended period is time bar in as much as the appellant unit frequently audited by the audit department. He referred to the copies of audit reports which are placed on page 34 to 49 of the appeal memo. Therefore there is no suppression of fact on the part of the appellant. 3. Shri Ajay Kumar Samota, Learned Superintendent (AR) appearing on behalf of the revenue reiterates the finding of the impugned order. 4. We have considered the rival submissions and perused the material available on record. The issue involved in the present case is that whether the freight/insurance charged separately in the sale in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... doubts, it is clarified that the cost of transportation from the factory to the place of removal, where the factory is not the place of removal, shall not be excluded for the purposes of determining the value of the excisable goods". From the above rule it can be seen that when goods are sold for delivery at a place other than place of removal, transaction value of excisable goods shall not include actual cost of transportation from the place of removal up to the place of delivery of such excisable goods. As per the rule reproduced above, in order to allow the deduction of the cost of transportation following criterion should be fulfilled : (a) The goods should be sold for delivery at a place other than place of removal. ....