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TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 794
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.... terms of quantum of duty and penalty, etc. 2. The issue, in brief, is that the department, based on scrutiny of purchase orders placed by certain Electricity Boards on the appellant, felt that the appellant was not including freight and insurance charged collected from them in the assessable value for the purpose of payment of Central Excise duty. On adjudication, the Original Authority confirmed the demand issued in terms of 2 SCNs covering the period from December, 2006 to January, 2012. While doing so, it was observed that in terms of said contracts and purchase orders, the goods were being sold at buyer's premises only and the said place or locations was to be treated as the place of removal. 3. Commissioner (Appeals) also took s....
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....ed in their favour on the ground that said two orders are per incuriam as it has not considered certain relevant case laws. He has also submitted that the issue is now squarely covered by the decision of this Bench in the case of Pawan Power and Telecom Ltd Vs CCT, Medchal [Final Order No. A/30181-30183/2025 dt.16.05.2025], which has a similar factual matrix. Therefore, there is no merit in the appeal filed by the appellant. 6. Heard both sides and perused the records. 7. The issue to be decided is whether certain payments being received by the appellant from their customers towards certain activities like loading, transportation, insurance, etc., are required to be included in the assessable value for the purpose of payment of Centra....
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....fit Industries Ltd (supra) is applicable. This Bench had the occasion to examine the entire gamut of this issue in the case of Pawan Power and Telecom Ltd (supra) and has, inter alia, held that in the given factual matrix, the judgment in the case of Roofit Industries Ltd (supra) and EMCO Ltd (supra) are relevant and not that of Ispat Industries Ltd (supra). The relevant paras are cited below for ease of reference. "6. The core issue to be decided is whether in this case the sale is on exworks basis or at buyer's premises. Various arguments have been put forth by the learned Advocate including commercial understanding and confirmed ex-works price and payment of VAT to prove that the title in the goods has been transferred at the fa....
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....rix about the place of sale. In the case of Schneider Electric India Pvt Ltd Vs CCT, Medchal-GST (supra), this Bench has examined this issue in a given factual matrix. The relevant para is reproduced below: "10. On the issue of the includability of freight, insurance, etc., there are catena of judgments passed by Hon'ble Supreme Court, High Courts and Tribunals. Essentially, one set of judgments has relied on the judgment of Hon'ble Supreme Court in the case of Ispat Industries (supra), whereas, another set of judgments has relied on the judgment of Hon'ble Supreme Court in the case of Roofit Industries (supra) and Emco Ltd (supra). While, as per Ispat Industries (supra) judgment, buyer's premises can never be the place of removal ....
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....t Industries (supra) and Emco Ltd (supra). In the case of M/s HD Wires Pvt Ltd Vs CCGST & CE, Indore [Final Order No.57985/2024 dt.08.08.2024], the Coordinate Bench at Delhi, inter alia, examined the applicability of judgment of Roofit Industries and Emco Ltd (supra) in a similar factual matrix where the appellant had not included the freight charges in the transaction value. The Tribunal also relied on the judgment of Hon'ble Supreme Court in the case of CCE & ST Vs Ultra Tech Cement [2018 (9) GSTL 337 (SC)], to come to the conclusion that in the given set of facts, point of sale was where the ownership of goods was transferred to the buyer or customer and therefore, all the expenses incurred and collected till the buyer's premises shall b....
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....elevant and not that of Ispat Industries (supra) as clearly the price is not ex-works. We, therefore, do not find any infirmity in the impugned order passed by the Commissioner (Appeals) insofar as merit is concerned." 7. Therefore, in view of the factual matrix of the case, as also relevant case laws cited by both the sides, we find no infirmity in the impugned orders and therefore, they are upheld." 8. We find that the order referred to by the appellant has relied on the judgment of Hon'ble Supreme Court in the case of Ispat Industries Ltd (supra). Reliance was also placed on the decision of coordinate bench in the appellant's own case vide Final Order No. A/56555/2017 dt.11.09.2017, wherein the matter was allowed by the Tribu....