Customs, Excise and Gold Tribunal - Tamil Nadu
Shasun Chemicals And Drugs Ltd. vs Commissioner Of C. Ex. on 1 September, 2003
Equivalent citations: 2003(158)ELT520(TRI-CHENNAI)
ORDER Jeet Ram Kait, Member (T)
1. This appeal is directed against Order-in-Appeal No. 231/2002 - TRY (ADK), dated 28-11-2002 by which the ld. Commissioner (Appeals) has upheld the order of the lower adjudicating authority but has set aside the penalty imposed on the appellant.
2. Ld. Advocate Shri K. Sankararaman submits that since the exclusion of the cost of transportation has to be allowed they had debited the duty on the cost of transportation charged over and above of the actual freight. This submission was also made before the Commissioner (Appeals) and they had requested the Commissioner to set aside the order of the lower adjudicating authority along with the penalty imposed on the appellant. Ld. Advocate further submits that the actual freight has to be allowed deductions even in case of assessee claiming equated/equalized freight and they cannot be discriminated and they have to be put at par with other assessees who are not charging equalized freight. He further submits that they are not asking for the deductions on equated freight and they have sought deductions only for the freight actually paid by them. In this connection, ld. Advocate also submits that in the Budget 2003-2004, even deductions on equalized freight have also been allowed and since this is prior to the amendment, they are only claiming deductions on the actual freight and not the equated freight during the relevant period.
3. Heard ld. DR Shri C. Mani, who submits that Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 provides deductions only for actual freight and does not provide for equated/ equalized freight. He further reiterates the finding contained in the impugned order passed by the ld. Commissioner (Appeals).
4. We have considered the submissions made by both the sides and are of the considered opinion that the deductions from the assessable value of the equalized value is not permissible. However, the deductions on actual freight even in case of assessee claiming equated/equalized freight is permissible and they cannot be discriminated against other assessees who are being allowed actual freight. On the contrary the Government in the Budget 2003-2004 has allowed deductions on the equalized freight also. In view of the submissions made by ld. Advocate that they have claimed deductions only in respect of actual freight and have paid the duty on the value over and above of the actual freight and since the cost of transportation has not been shown separately in the invoices, we are remanding the matter to the original authority to verify the actual freight and whether duty has been paid after deducting the amount from the assessable value on the actual freight so charged by them. Thus the appeal succeeds by way of remand. Ordered accordingly.