TaxTMI 
TaxTMI 
2024 (8) TMI 1208
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....nvolved in both the appeals is identical, therefore, both the appeals are taken up together for discussions and disposal; for the sake of convenience, the facts of the appeal No. E/50855/2015 are taken up. 2. Briefly the facts of the present case are that the appellants are engaged in manufacture of staples in strips, falling under Tariff entry 83052000 ('impugned goods') of the Central Excise Tariff Act, 1985 and are clearing such impugned goods, on payment of appropriate excise duty in terms of Notification dated 06.02.2010. The said Notification, issued under Section 5A of the Central Excise Act, 1944 ('the Act'), provides exemption to specified excisable goods manufactured in a unit setup in the State of Jammu & Kashmir....
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.... After following the due process, the Ld. Commissioner vide the impugned Order, fixed value addition norms to 46.79% in terms of para 6(3) of the Notification and has denied benefit on the following grounds: (i) Central Excise Duty - The entire excise duty is to be deducted while computing the amount, if value addition is in terms of para 6.5 of the Notification. The Appellant contention that only the excise duty paid from cenvat credit is to be deducted is incorrect. Excise duty is never considered as part of revenue generation for assessee or as part of value addition activities. Thus, the refunds granted under the Notification cannot be considered as part of value addition. (ii) Freight Outward - The point of sale is the factory gate....
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.... 14.11.2002 which states that "Refund" envisaged in the notifications is not on account of any excess payment of excise duty by the manufacturers but is basically designed to give effect to the exemption. Ld. Counsel further submits that Notification No. 1/2010-CE has been issued under Section 5A of the Act which empowers the Government to issue notification granting exemption. Therefore, the goods cleared by appellant are exempt. The special mechanism under the Notification allows the Appellant to take credit and grants refund of duty paid through PLA. The portion of excise duty, which is refunded to the appellant is the duty which is considered as exempt. He further submits that this issue is no more res integra and has been settled by th....
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....nsidering the submissions of both the parties and perusal of the material on record, we find that in the present case only two issues are involved, whether the entire excise duty is to be deducted while computing the amount, if value addition is in terms of para 6.5 of the Notification and secondly freight and transit are part of the sale price as appellant's sales are for destination sales. Both these issues have been considered by the Tribunal in the appellant's own case. The first case is reported in 2018 (363) E.L.T. 543 (Tri.-Chandigarh), the Tribunal has considered both these issues and has held in para 9 & 15 which are reproduced here in below: 9. We find that the procedure of payment of duty through PLA and subsequent refund of th....
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....s complete when seller of the goods transferred to the buyer the property in the goods for price. He has concluded that point of sale is the factory gate as the appellant is not stock transferring the goods to the customer's premises. Hence, freight and insurance is not be included in the sale value. On the basis of Section 4 of Central Excise Act, the Commissioner has held that the duty of excise is charged on transaction price at the place of removal and such place of removal is place of sale. Hence, outward freight will not form part of the sale value. We find that in this case the sales made by the appellants are on FOR destination basis. The invoices placed on record show that the freight on these goods has been paid by the appella....