Custom, Excise & Service Tax Tribunal
National Peroxide Ltd vs Commissioner Of Central Excise, ... on 23 July, 2013
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT MUMBAI COURT No. I APPLICATION No. E/S/95059/13-Mum APPEAL No. E/86805/13-Mum (Arising out of Order-in-Appeal No. BR/(73)/Th-I/2013 dated 30.1.2013 passed by Commissioner of Central Excise (Appeals), Mumbai-I) For approval and signature: Honble Mr. S.S. Kang, Vice President Honble Mr. P.K. Jain, Member (Technical) ======================================================
1. Whether Press Reporters may be allowed to see : No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the :
CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : Seen of the Order?
4. Whether Order is to be circulated to the Departmental : Yes authorities?
====================================================== National Peroxide Ltd. Appellant Vs. Commissioner of Central Excise, Thane-I Respondent Appearance:
Shri R. Sundaram, Advocate, for appellant Shri Ahibaran, Additional Commissioner (AR), for respondent CORAM:
Honble Mr. S.S. Kang, Vice President Honble Mr. P.K. Jain, Member (Technical) Date of Hearing: 23.7.2013 Date of Decision: 23.7.2013 ORDER NO Per: S.S. Kang Heard both sides.
2. The applicants filed this application for waiver of pre-deposit of duty of Rs.77,053/-, interest and penalty. The demand is confirmed after adding freight to the assessable value of the goods. The case of the Revenue is that the applicants are recovering the freight by issue of debit notes separately and the freight is mentioned in the invoice separately. The applicants relied upon the decision of the Honble Supreme Court in the case of CCE, Noida vs. Accurate Meters Ltd. reported in 2009 (235) ELT 581 (SC).
3. As the issue is settled by the decision of the Honble Supreme Court, the appeal is being taken up with consent of both sides, after waiving pre-deposit of the dues.
4. The appellants are engaged in the manufacture of hydrogen peroxide and clearing the same on payment of appropriate duty as per the provisions of Section 4 of the Central Excise Act. Show cause notice was issued on the ground that the appellants were recovering the freight separately by issuing debit notes and the freight is not shown in the invoice separately, therefore the freight is to be added to the assessable value.
5. The contention of the appellants is that the transportation of the goods to the place of their customer is not a condition for sale. It is in some cases where the customer making a request for delivery, the appellants arranged transport and recovered transportation charges as agreed by the customer.
6. We find that this issue is now settled by the decision of the Honble Supreme Court in the case of Accurate Meters Ltd. (supra) whereby the Honble Supreme Court, in similar situation, held that the freight charges are not part of assessable value of the goods. In view of the above decision, the impugned order is set aside and the appeal is allowed.
(Dictated in Court) (P.K. Jain) Member (Technical) (S.S. Kang) Vice President tvu 1 3