Customs, Excise and Gold Tribunal - Bangalore
Toyota Kirloskar Motors Pvt. Ltd. vs Cce on 22 June, 2005
ORDER S.L. Peeran, Member (J)
1. This appeal arises from Order-in-Appeal No. 103/2004 dated 16.09.2004 passed by the Commissioner of Central Excise (Appeals-II), Bangalore. The Commissioner (Appeals) has confirmed the duty demand on freight and insurance charges realised from the dealers which is alleged to be not on actuals and the same has been directed to be included in the Basic price of the spare parts. Penalty and interest has also been confirmed. The appellants contended that the transportation charges / insurance cost is required to be excluded from the transaction value as held by the Tribunal in large number of cases. The learned Counsel relied on judgment rendered in the case of Associated Drug Company v. Commissioner of Central Excise, Bangalore, decided by this Bench in Final Order No. 1949/2004 dated 29.11.2004 wherein it has been held that the freight / transportation charges were not includable in the assessable value. He also relied on the judgments rendered in the case of Jindal Vijayanagar Steel Ltd. v. Commissioner of Central Excise, Belgaum, . The learned Counsel submits that the documentary evidence clearly shows that the sale is effected at factory gate and subsequent transport charges was collected from customers to transport the goods to customer's place is not required to be added in the value.
2. The learned DR re-iterated the points in the Commissioner (Appeals)'s order.
3. On a careful consideration of the submissions made by both the sides, it is seen that the appellants had been clearing the goods by invoices at factory gate by showing the sale price in terms of actual price effected at factory gate. Therefore, in terms of the judgments cited above, the freight and insurance charges realised from the dealers who was transporting the goods from factory gate is not added in the assessable value. Therefore, respectively following the ratio of the judgments cited above, the impugned order is set aside and the appeal is allowed.