TaxTMI 
TaxTMI 
2026 (3) TMI 905
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....f the case are that appellant is a manufacturer of electrical transformer and parts of transformer of chapter 85 of Central Excise Tariff and sale the same to the buyer. In this case after removal of the goods from the factory gate on excise invoice, the appellant raised separate commercial bills to the buyer i.e. M/s. Philips India Ltd. on account of forwarding charges for transporting materials to TDR at a later time. 4. The Revenue is of the view that the said transportation charges are to be includable in the transaction value. Consequently, proceedings were to be initiated against the appellant and demand of duty was also confirmed alongwith interest and penalty were also imposed. 5. Aggrieved from the said order appellant is bef....
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....ory gate or at a later point of time, i.e., when the delivery of the goods is effected to the buyer at his premises. This aspect is to be seen in the light of the provisions of the Sale of Goods Act by applying the same to the facts of each case to determine as to when the ownership in the goods is transferred from the seller to the buyer. The charges which are to be added have put up to the stage of the transfer of that ownership inasmuch as once the ownership in goods stands transferred to the buyer, any expenditure incurred thereafter has to be on buyer's account and cannot be a component which would be included while ascertaining the valuation of the goods manufactured by the buyer. That is the plain meaning which has to be assigned....
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....he premises of the buyer when the goods are delivered and by virtue of Section 19 of the Sale of Goods Act, the property in goods was transferred at that time only. Section 19 reads as under: "19. Property passes when intended to pass. (1) Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. (2) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case. (3) Unless a different intention appears, the rules contained in Sections 20 to 24 are rules for ascertaining th....
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.... has been seen in the present case all prices were "ex-works", like the facts in Escorts JCB's case. Goods were cleared from the factory on payment of the appropriate sales tax by the assessee itself, thereby indicating that it had sold the goods manufactured by it at the factory gate. Sales were made against Letters of Credit and bank discounting facilities, sometimes in advance. Invoices were prepared only at the factory directly in the name of the customer in which the name of the Insurance Company as well as the number of the transit Insurance Policy were mentioned. Above all, excise invoices were prepared at the time of the goods leaving the factory in the name and address of the customers of the respondent. When the goods were han....