Case Law Details
IDMC Limited Vs C.C.E. & C. Anand (CESTAT Ahmedabad)
CESTAT Ahmedabad held that demand of duty on freight by including the same in assessable value not sustainable as factory gate is the place of removal.
Facts- The issue involved in the present case is that whether the freight charged separately in the sale invoices of excisable goods is includible in the assessable value of such excisable goods and duty on the said freight is chargeable or otherwise.
Conclusion- We find that there is no dispute in the fact that the appellant have cleared the goods from their factory and delivered at the buyer’s premises. In the invoice the freight was charged separately when the sell invoice was issued from the factory at the time of clearances of goods. The factory gate is the place of removal. Merely because the appellant is under obligation to deliver the goods at the buyer’s premises, the place of removal which is a factory gate cannot be extended and buyer’s premises cannot be made as place of removal.
Held that the freight cannot be included in the assessable value in the facts of the present case. Consequently, no demand of duty on freight would sustain. As a result, the impugned order is set aside, and appeal is allowed, with consequential relief.
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