Case Law Details
Concrete Products and Construction Co. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
In the recent case of Concrete Products and Construction Co. Vs Commissioner of GST & Central Excise (CESTAT Chennai), a significant ruling was made that has far-reaching implications for the logistics and manufacturing sectors. The appellant, engaged in manufacturing concrete sleepers, was found to have collected higher freight charges from customers than paid to transporters. The central issue in the dispute was whether the surplus amount should be included in the assessable value for the excise duty.
The appellant asserted that only the actual freight paid to the transporters should be included in the assessable value, and the surplus freight charges collected from customers should be excluded. The department, however, believed that the entire freight collected from customers should be part of the assessable value. This difference in views stems from the interpretation of excise duty regulations. The appellant backed their stance with precedents like the cases of Baroda Electric Meters Ltd. Vs Collector of Central Excise and Indian Oxygen Ltd. Vs Collector of Central Excise.
The verdict came in favor of the appellant, as the Tribunal reiterated that excise duty is a tax on the manufacture, not on the profits made by a dealer on transportation. Thus, the surplus freight charges collected from customers were excluded from the assessable value for excise duty calculation. This judgment clarifies a key aspect of excise duty calculation and sets a precedent for similar future cases.
FULL TEXT OF THE CESTAT CHENNAI ORDER
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