2003 (6) TMI 110

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....e view in all these cases that by applying Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 [hereinafter referred to as the Valuation Rules] the equalized freight charges were includible in the assessable value of goods for the purpose of payment of duty. The appellants contend that the Commissioner's view is erroneous in view of the provisions contained under Section 4(1)(a) of the Central Excise Act, as substituted by Section 94 of the Finance Act, 2000 w.e.f. 1-7-2000. 2. It is not disputed before us by the Revenue that in all the above cases sale has taken place at the factory gate. It is also not disputed that the assessee and buyer of the goods are not related and that price is the sole....

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.... or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods." 4. The above provisions would make it clear that when there is a sale price at the factory gate and if the 3 conditions referred under Clause (a) are satisfied, no other ingredient has to be added to the sale price at the factory gate for arriving at the assessable value. Determination of the value by applying Valuation Rules would arise only when the va....

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....facts of the cases before us the sale and delivery have taken place at the factory gate. The freight charges which is in relation to an independent transaction is separately shown in the invoices. It is not a case where the assessee is claiming deduction in respect of freight charges from a consolidated price. In these cases the assessees' contention is that the freight charges cannot be added to the assessable value of the goods. Since the above contention taken by the assessees is justified in the facts of the case, whether the freight charges were shown on an equalized basis or actual basis, is totally irrelevant for consideration. 5. We, therefore, hold that in spite the amendment brought to the statute w.e.f. 1-7-2000 and the New Va....