Customs, Excise and Gold Tribunal - Delhi
M/S. Indian Gas Cylinders vs Cce, Delhi on 11 July, 2001
ORDER
Jyoti Balasundaram
1. In the present case, the demand of duty of Rs.4,78,844/- arises by inclusion of freight charges (transport charges) in the assessable value of gas cylinders manufactured by the applicants herein and cleared to their buyers. In addition a penalty of Rs.40,000/- has been imposed.
2. None appeared for the assessee, when case is called; and hence we heard the ld.DR and perused the case records. We find that prima facie the authorities below are correct in holding that the ownership of the goods passed on to their buyers only on the destination of the consignee and, therefore place of destination is relevant for the purpose of value of the goods to be assessed and hence the deduction on account of freight charges which were claimed by the assessee in their invoices is not admissible. In this connection, we are supported by the decision of the Tribunal in the case of M/s. Prabhat Zarda Factory reported in 2000 (119) ELT 191. We, therefore, direct pre-deposit of the entire duty amount within a period of eight weeks from the date of receipt of this stay order and on such deposit, pre-deposit of penalty shall stand waived and recovery therefore stayed pending the appeal. Failure to comply with the direction shall result in stay being vacated and the appeal rejected without prior notice.
Compliance to be reported on 23.10.2001.
(dictated in court)