Customs, Excise and Gold Tribunal - Delhi
Farm Fresh Foods (P) Ltd. vs Collector Of C. Ex. on 21 September, 1998
Equivalent citations: 1999(113)ELT441(TRI-DEL)
ORDER V.K. Agrawal, Member (T)
1. In this appeal, the issue involved is whether amount collected as freight which is more than the amount spent on actual transport is includible in the assessable value under Section 4 of the Act.
2. We have heard Ms. Ginni Bedi, learned Advocate and Shri Shiv Kumar, learned DR for the Revenue.
3. Ms. Ginni Bedi, learned Advocate submitted that the appellants were using specially designed trucks for the transport of the pipes and accordingly their rates were not comparable to the rates charged by truck unions and, therefore, the allegation of excess recovery was not sustainable. She also mentioned that the issue stands settled by the decision of the Supreme Court in the case of Baroda Electric Meters Ltd. v. C.C.E. reported in 1997 (22) RLT 5 (S.C.) wherein the Supreme Court held that the duty of excise is a tax on the manufacturer and not a tax on the profits made by a dealer on transportation. As in this case, the Department has not adduced any evidence to show that the extra freight was nothing but part of the value of the goods, the differential amount is not includible in the assessable value. Following the decision of the Supreme Court, We, therefore, allow the appeal.