Includibility of loading expenses within factory in assessable value

PJ/Case Laws/2010-11/1005

Case: CCE, Cal-IV v/s Waldies Ltd.

Citation: 2010 (102) RLTONLINE 166 (CESTAT-KOL.)

Issue:- Whether the expenses of loading the goods within the factory for clearances to a party are includible in the assessable value of the goods?

Brief Facts:- Respondents were clearing their goods from the depot and in some cases the buyer faces difficulty in lifting the material from the depot and at the request of the buyer, the respondents were arranging transport to deliver the material to the buyers place and in respect of this the respondents were raising separate invoices.
Proceedings were initiated against the appellant to include the said expenses in the assessable value of the goods.

In appeal, the Commissioner (Appeals) held that in the show cause notice it was alleged that the appellant had realized excess amount in the name of transportation cost but had not included the same in the assessable value but the Adjudicating Authority had held that the charges reflected in the depot invoices fall in the category of outward handling charges and the outward handling charges are chargeable to duty as per definition of transaction value given under Section 4 (3) (d) of the said Act. Thus, it was held that the impugned order was passed without proper scrutiny and without appraisal of facts and law and set aside the impugned order.

Revenue is in appeal before the Tribunal.

Appellant’s Contention:- Revenue contended that the amount collected as handling charges in respect of transportation of goods from the depot to the place of buyer at the request of the buyer is includible in the assessable value of the goods.

Revenue relied upon the decision of the Larger Bench in the case of CCE v/s Supreme Petrochem Ltd. [2009 (240) ELT 38 (Tri.-LB)].
Reasoning of Judgment: - The Tribunal held that in the case of CCE v/s Supreme Petrochem Ltd, the issuebefore the larger bench was whether the expenses of loading the goods within the factory for clearances to a party are includible in the assessable value of the goods. But in the present case, there is no such dispute hence the ratio of the decision is not applicable on the facts of the present case. As the respondents arranged transportation of goods to buyer’s place, in some cases at the request of buyer therefore these charges are not includible in the value of the goods.

Judgment:- Appeal dismissed.

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PJ/Case Laws/2010-11/1005

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