Case Law Details
Messrs Mira Industries Vs C.C.E (CESTAT Ahmedabad)
CESTAT Ahmedabad held that amount charged as freight and handling charges which are separately shown in the invoices cannot be included in the assessable value under section 4 of the Central Excise Act, 1944.
Facts- The appellant is engaged in the manufacturing of Power Driven Pumps (PD Pumps) and parts thereof falling under chapter 84 and 85 of Central Excise Tariff Act.
It was noticed by the department that appellant had collected freight and handling charges of Rs. 20,37,289/- and Rs. 44,01,058/- respectively @ 0.5% on assessable value, from their customers for the period from 2007-08 to 20 10-11 and April 2011 to February 2012 respectively and had not included the above said charges in the assessable value of excisable goods cleared on payment of duty. Therefore the appellant were issued two show cause notices proposing recovery of Central Excise Duty on freight and handling charges recovered from their customers as they were forming part of assessable value of excisable goods cleared by them from their factory premises.
The adjudicating authority confirmed the demand of Central Excise duty under the proviso to Section 11A(1) of the Central Excise Act, 1944. He has also imposed penalty of the same amount under Section 11AC of the Central Excise Act, 1944.
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