COMMISSIONER OF CENTRAL Vs. ACCURATE METERS LTD

JUDGEMENT

(1.) Whether reight and insurance charges constitute the value of the goods for the purpose of computation of Excise Duty in terms of Central Excise Act, 1944 (for short, "the Act") and the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (for short, "the Rules") is the question involved in this appeal.

(2.) Respondent is engaged in the manufacture of electric meters and parts there of falling under Chapter Sub-heading No. 9028.00 and 9033.00 of First Schedule to the Central Excise Tariff Act, 1985. Its customers, inter alia, are various State Electricity Boards constituted and incorporated under the Electricity (Supply) Act, 1948. Indisputably, the State Electricity Boards in terms of advertisements issued in this behalf called for quotation for supply of electric meters. The value of the electric meters was to be fixed as at the factory gate. Freight and the insurance charges, however, as stipulated therein, were to be charged on an average basis and not on actuals.

(3.) Before the Adjudicating Authority, the respondent raised a plea that keeping in view the nature of transaction, freight and insurance charges were not to be included for the purpose of calculation of value of the goods.