TaxTMI 
TaxTMI 
2003 (4) TMI 109
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecessary to decide that point. 3. The question for consideration in both these appeals is whether in cases where a manufacturer includes equalised freight in the price of the goods and sells the goods all over the country at a uniform price, the Department is entitled to compute value by including the cost of transportation from the factory to the depot. This question was decided by this Court in the case of Union of India & Ors. Etc. Etc. v. Bombay Tyre International Limited Etc. Etc. reported in 1983 (14) E.L.T. 1896 (S.C.). It was thereafter confirmed in the case of Government of India v. Madras Rubber Factory Limited reported in 1995 (77) E.L.T. 433 (S.C.). 4. Thereafter with effect from 28th February, 1996, amendments were brough....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he course of wholesale trade for delivery at the time and place of removal at a price fixed under any law for the time being in force or at a price, being the maximum, fixed under any such law, then, notwithstanding anything contained in clause (iii) of this proviso, the price or the maximum price, as the case may be, so fixed, shall, in relation to the goods so sold, be deemed to be the normal price thereof ; (iii) where the assessee so arranges that the goods are generally not sold by him in the course of wholesale trade except to or through a related person, the normal price of the goods sold by the assessee to or through such related person shall be deemed to be the price at which they are ordinarily sold by the related person ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory and, from where such goods are removed. (ba) "time of removal", in respect of goods removed from the place of removal referred to in sub-clause (iii) of clause (b), shall be deemed to be the time at which such goods are cleared from the factory; (c)-(e) xxx".xxxxxxxxx 5. After the amendment, the Department sought to include in the value the cost of transport from factory to the depot, even in case where the manufacturer sold the goods at a uniform price all over the country by including the element of equalised freight. The Tribunal has upheld the view of the Department on the reasoning that by thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
...."such place of removal". Thus, if the place of removal was the factory, then the price would be normal price at the factory. If place of removal was some other place like a depot or the premises of a consignment agent and the price was different then that different price would be the price. It is because newly added Section 4(ia) was now providing for different prices at different places of removal that the definition of the term "place of Removal" had to be enlarged. Thus the amendment was not negativing the judgments of this Court. If that had been the intention it would have been specifically provided that even where price was the same/uniform all over the country, the cost of transportation was to be added. 7. Thus, in cases where th....