2005 (2) TMI 416

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....: P.G. Chacko, Member (J)]. - E/488/2003 : The appeal filed by M/s. Kothari Sugars & Chemicals Limited is directed against a demand of duty of Rs. 1,27,534/- and a penalty of equal amount. The demand of duty is consequential to inclusion, in assessable value, of excess freight and insurance charges collected by the assessee from their buyers during 1996-2001. The assessee was collecting freight an....

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....mises would not extend the 'place of removal' to the said premises. The Commissioner accepted this argument and held that actual freight and insurance charges collected by the assessee from their buyers were liable to be excluded from the assessable value. However, having found that they had collected excess amounts from their buyers towards these charges during 1996-2001, the Commissioner treated....

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....alue of the goods since the duty of excise was a tax on manufacture and not on the profits made by a dealer on transportation. We find that the principle underlying the Supreme Court's decision is also applicable to the excess insurance charge collected by the assessee from their buyers in connection with transportation of the goods from the factory to the buyer's premises. The excess amounts coll....