M/S. Escorts Jcb Limited, Commissioner ... vs Commissioner Of Central Excise ... on 24 October, 2002
2. The assessee's contention is that their sales have taken place at factory gate and therefore freight and insurance charges are not to be added in the assessable value in consonance with the Apex Court judgment rendered in the cases of Escorts JCB Ltd. v. CCE, Delhi-III ; VIP Industries Ltd. v. CCE, Aurangabad and Board Circular No. 59/1/2003-CX dated 3.3.2003. The Commissioner after detailed examination of the facts has found that the assessee had received a purchase order from Bharat Sanchar Nigam Ltd. for supply of DDF Frames and modules, which inter-alia stipulates that the prices indicated are inclusive of Excise duty, ST, other statutory duties, levies, packing and forwarding charges, freight and insurance charges, etc. and the mode of transport is by road. The assessee had shown the place of removal as factory gate and not that of as purchaser's place. The Commissioner (Appeals) has accepted the contention that the freight and insurance charges are not to be added in the light of the judgments cited supra. The Revenue aggrieved with this order has filed the appeal for setting aside the same. They contended that the place of removal and point of sale in the present case is that the purchaser's place and not the factory gate.