TAMILNADU TELECOMMUNICATIONS LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal is directed against Order -in -Appeal No. 22/2002 (M -III) dated 14.3.2002 and Order -in -Appeal No. 71/2001 dated 31.5.2001 in which the Commissioner (Appeals), while agreeing with the order of the original authority, has held that all the expenditure including freight and transit insurance charges incurred upto the place of the sale have to be included in the assessable value.

(2.) AGGRIEVED by this order, the appellants have come in appeal. Ld. Counsel Shri V. Balasubramaniam submits that the issue has been decided by the Apex Court in the matter of Escorts JCB Ltd. v. CCE, Delhi -II as reported in in which it has been held that the ex -factory sale price at the place of removal, as the factory premises is to be accepted and freight and transit insurance charges from the buyer is not to be included in the assessable value. They further held that the ownership of the goods have no relevance insofar as transit insurance of goods is concerned. It has also been held that the delivery to the carrier at factory gate is delivery to the buyer and element of freight and transit insurance cannot be included in the assessable value. The Apex Court has thus reversed the judgement rendered by the Tribunal in the case of Escorts JCB Ltd. as reported in and has approved the judgement rendered by the Tribunal as reported in, 2002 (43) ELT 131.

(3.) WE have considered the submissions made by both the sides and are of the considered opinion that the issue is no longer res integra and the Apex Court in the Matter of Escorts JCB Ltd. v. CCE, Delhi -II as reported in has reversed the judgement rendered by the Tribunal in the case of Escorts JCB Ltd. as reported in . The Board while accepting the judgement of the Apex Court has also issued an order under Section 37B vide Order No. 59/1/2003 -CX dated 3.3.2003 clarifying the position in the light of the judgement rendered by the Apex Court. The Apex Court while reversing the Tribunal's order has held that the freight and transit insurance charges are not to be included in the assessable value, since the price at the factory gate is the price for assessable value, since the price at the factory gate is the price for assessable purpose and the place of removal is also the factory gate. The Apex Court has also held that the ownership of the goods have no criteria insofar as transit insurance of goods is concerned because the delivery of the goods to the carrier at the factory gate is delivery to the buyer and element of freight and transit insurance is not be included in the assessable value. Respectfully following the judgement of the Apex Court in the case of Escorts JCB Ltd. v. CCE, Delhi -II as reported in , we allow the appeals, with consequential relief, if any. Ordered accordingly.