2000 (9) TMI 71

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....re sold FOR destination. The price charged includes two per cent towards transit risk insurance. For the purposes of the assessable value of the bulbs and tubes, the respondent claimed a deduction on account of equalised freight based on the elements of transportation charges, insurance charges, octroi and taxes. The respondent filed a statement of actual expenses for the year in question, namely,....

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....t an allowable deduction. He drew attention in this behalf to the two M.R.F. judgments, Assistant Collector of Central Excise & Ors. v. Madras Rubber Factory [1987 (27) E.L.T. 553 (S.C.) = 1986 (Suppl.) S.C.C. 751] and Government of India & Ors. v. Madras Rubber Factory Ltd. & Ors. [1995 (77) E.L.T. 433 (S.C.) = 1995 (4) S.C.C. 349)] where it has been held that payments in the nature of compensati....

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....submission was not accepted and the court was of the view that it was compensation that was being paid to the customers, it was part of the cost of the transportation of the goods. 5.We are unable to accept either submission. In the case of transportation what is includible is the cost of taking out insurance to cover the goods transported; in other words, to cover oneself against a possible lo....