Case Law Details
India Cements Ltd Vs Commissioner of Central Excise & Service Tax (CESTAT Hyderabad)
CESTAT Hyderabad held that value of freight charged for delivering goods to buyers premises is not includible in the assessable value for the purpose of payment of central excise duty.
Facts- The appellants are engaged in manufacturing of cement. They are also registered under service tax in relation to taxable service i.e. transport of goods by road service.
Observing the terms and conditions of contract to sale, the place of delivery was the place of removal that Department alleged that the appellant has short paid central excise duty as it has not included the freight charges in assessable values in contravention of the provisions of Section 4 of the Central Excise Act, 1944 read with Rule 5 and 7 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 and the Rule 4, 6, 8, 11 and 12 of the Central Excise Rules 2002.
A show cause notice bearing No. 102/2878/2016 dated 11.07.2017 was served upon the appellant proposing a demand of Rs. 3,50,41,000/- for the period from 01.08.2015 to 31.03.2017 along with the proportionate interest and appropriate penalties. The proposal was confirmed initially vide the respective Orders-in-Original as mentioned in the table above. In Appeal No.E/30978/2018 the Order-in-Original has been upheld vide Order-in-Appeal as mentioned in the said table. Still being aggrieved the appellant is before this Tribunal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
