Customs, Excise and Gold Tribunal - Delhi
Sapphire (India) Pvt. Ltd. vs Commissioner Of Central Excise on 16 March, 2004
Equivalent citations: 2004(170)ELT14(TRI-DEL)
ORDER S.S. Kang, Member (J)
1. Heard both sides. Appellant filed this appeal against the demands of Rs. 55,490/- and Rs. 30,733/-. The demand of Rs. 55,490/- was raised on the ground that the appellant received higher value of goods supplied by them on account of price variation clause. The additional consideration was revised on 30-7-1999 and on a visit by the officers of the Department of Revenue on 6-10-1999, it was found that the appellant had not paid differential duty. As the price was enhanced and additional consideration was revised by appellant and this fact was admitted by them. Hence appellants were liable to pay the differential duty on the enhanced price, therefore, we find no infirmity in the impugned order whereby duty demand was confirmed.
2. In respect of the demand of Rs. 30,733/-, the duty is confirmed on the ground that appellants are receiving same amount over and above, the freight expenses shown by them from the customers. This additional consideration was received by them, therefore, appellants are liable to pay duty also. The appellants are not disputing the fact that this amount is in respect of travelling expenses, quality control staff and loading and packing charges. Travelling expenses, quality control expenses and packing charges are manufacturing expenses. The additional consideration received by them on account of these activities is part of assessable value of goods. In these circumstances, we find no infirmity in the impugned order whereby the demand was confirmed on this account. The loading & unloading expenses are part of transportation charges, to that extent, the expenses are to be treated as part of freight expenses. The appellants are entitled for deduction of these expenses as transportation charges. Matter is remanded to the adjudicating authority for recalculation of the duty after accepting loading & unloading expenses as part of transportation charges, if already not included. The appeal is disposed of as indicated above. However, keeping in view the facts and circumstances of the case, the penalty is reduced to Rs. 5,000/-.