TaxTMI 
TaxTMI 
2026 (2) TMI 516
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.... to consignment agents premises, loading and unloading charges, agency commission etc., and thereafter prepare a statement called sale pattis on a monthly basis and send the same along with relevant bills to their principal, M/s. Tulsyan NEC Ltd. The Department was of the view that after amendment to Section 4 of Central Excise Act, 1944, the price charged by the consignment agents on the customers is the basis on which duty should be discharged at the rates as applicable. 3.1 Whereas the appellant explained that freight could not be added, for the simple reason that the goods in question being voluminous iron rods (TMT Bars), used for construction purposes and the same were being transported through a lorry on 'To- pay basis', directly to the site of the buyer. As the value of freight for the transportation of the TMT Bars was not known at the time of clearance, the appellant took the stand that such freight amounts alone could not be added with reference to the other expenses incurred by the consignment agent and thus consequently, there was no shortfall in payment of duty. 3.2 However, the Department did not agree to this mode of valuation, and adopted the freight element ....
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....ded in the assessable value; viii. The above condition would apply only when the consignment, while stock transferring was sent on freight "paid" basis and such cost incurred by the Appellant company, as an expense in his books of accounts; ix. The issue with reference to the period prior to March 2003 (SCN No. 81/2003 dated 06.11.2003) is no longer res integra and has already been settled in their favour vide Tribunal's Order reported in [2011 (263) ELT 581 (Tri-Chennai)]; x. For the second time period the issue has again been settled by the Tribunal in recent Order No. 40111-40112/2017 dated 24.01.2017; xi. The materials in question are inevitably stock transferred directly to the site on account of the consignment being a bulky one and the freight charges were paid by the customers; xii. The valuation for excise in such cases would not include the freight element as the same is not incurred by the appellant nor the consignment agent; xiii. The invoices of the Appellant indicate the correct nature of the transaction. 5.2 The impugned Order-in-Appeal No. 462/2017 (CTA-I) dated 13.12.2017 had concluded that the case at ha....
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....ved by the Order-in-Appeal No. 462/2017(CTA-I) dated 13.12.2017, an appeal was filed before this Tribunal in Appeal No. E/40576/18-DB wherein the appellants strongly denied the allegations for demanding the differential duty and stated that the two show cause notices are to be considered differently for the purpose of assessment. With reference to the period before 14.05.2003, the depot, premises or a consignment agent's place was not construed as a place of removal. After the above amendment from 14.05.2003, the place of removal definition incorporated the premises of the consignment agent as the additional place of removal. 6.2 But, the appellants have referred to the period prior to March 2003 and the SCN No. 84/2003 dated 06.11.2003 which was settled in favour of the appellant, vide Tribunal's order reported in 2011 (263) E.L.T. 581 (Tri. Chennai). The issue which was before the Bench was an identical one and being with reference to the same company, the procedures adopted for despatches had been the same. "We note that "depots and premises of consignment agents" were excluded from the definition of "place of removal" under the Central Excise Law during the ....
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....signment depot in terms of Explanation 2 to Rule 5 of Valuation Rules. Ld. Advocate submits that all the sales at the consignment agent's place was "freight to pay" basis. Therefore, there was no realization of freight at all by the appellant. Freight was directly paid by the buyer to the transporter and nothing came to the appellant. Heard both sides and perused the record. Revenue has not brought to record whether by any means, freight paid by the buyer to the transporter has benefited the manufacturer. The law relating to excise being revenue- elastic in its character, elasticity of revenue has not been jeopardized. There is no flow back of the freight aspect proved by revenue showing that the same has come to the manufacturer in disguise. That not being the case, the assessable value declared by the appellant remains untouched. Accordingly, both the appeals are allowed." Accordingly, the appellants had requested to set aside the Order-in-Appeal No. 462/2017(CTA-I) dt. 13.12.2017 and to allow the appeal. 7. The Ld. Advocate Ms. S. Sridevi represented for the Appellant and the Ld. Authorized Representative Ms. G Krupa, was present for the Resp....
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....ng aside the impugned order with consequential relief. 9. The Revenue in this regard had relied on the following cases: - i. In Bloom Dekor Ltd. v. CCE, Ahmedabad-I [2018 (364) E.L.T. 894 (Tri.-Ahmd.)] ii. In Indian Oil Corporation Ltd. v. CCE, Raigad [2015 (327) E.L.T. 582 (Tri.- Mumbai)], iii. In Shakti Tubes Ltd. v. Commissioner of Central Excise, Patna (2018 (15) G.S.T.L. 393 (Tri.-Kolkata)], 10. Heard both the sides and considered the submissions and evidence available in appeal records and case laws relied upon. 11. This Tribunal has decided vide its Final Order Nos. 41133-41135/2025 dated 10.10.2025 in the appellant's own case involving the same issue and held as follows: - "6. After hearing both sides and on perusal of records, the only issue that arises for our consideration is, 'whether freight amount realized by Appellant from the buyers at the consignment's depot was includible in the assessable value or not?". We find that this issue stands decided by this Bench in the Appellant's own case (supra). The Tribunal in Appellant's own case reported in 2017 (7) G.S.T.L. 94 (Tri-Chennai) has held as under : "There is no di....