2004 (10) TMI 134

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....filed by M/s. Dalmia Biscuits Pvt. Ltd., the issue involved is whether the transport charges collected by them are includible in the assessable value of the goods manufactured by them. 2. We heard Shri K.K. Anand, learned Advocate for the appellants and Shri S.M. Tata/learned S.D.R. for the Revenue. 3. When the Central Excise Officers visited the factory premises of the appellants, they found th....

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....94) E.L.T. 13 (S.C). However, on appeal preferred by the Revenue, Commissioner (Appeals), under the impugned order, has confirmed the demand of duty after setting aside the Adjudication Order holding that the excess amount of freight recovered by the appellants was nothing but flow-back of money from the buyer to them in the garb of transportation charges and was, thus, includible in the assessabl....

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....d at the factory gate i.e. place of removal. Thus, the cost of transportation from the factory gate to the place of delivery, cannot be added to the price at factory gate because the duty of excise is a tax on manufacture and not on the profits made on transportation charges. Similar views have been expressed by the Supreme Court in the case of Baroda Electric Meters Ltd. (supra), wherein the frei....

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.... of the present matter. The finding of the Commissioner (Appeals) in the impugned Order that these judgments are not applicable as the same apply when profit is made on transport by the dealer whereas in the instant case, dealer is not involved. The ratio of the decision is that the profit made on transport is not to be included in the assessable value. In view of the decision of the Supreme Court....