P.J. MARGO PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE appellants M/s. P.J. Margo Pvt. Ltd., are selling their goods through their wholly owned subsidiary Company, M/s. Margo Bio Controls Pvt. Ltd. (MBC). The assessable value was arrived at and MBC was availing the charges and accordingly excise duty was discharged. The lower authorities while ordering the finalisation of assessment concluded that freight on the clearance made from the Depot of MBC to the buyers/customers' destination, an abatement was not permissible on the following grounds The freight has been claimed as an abatement from the assessable value. This is incorrect in as much as the sale price of the product is as at Depot of M/s Margo Bio Control Pvt. Ltd. As per Section 4 of the Central Excises Act, 1944 the element of freight from Depot to Dealers' premises is not permissible abatement from sale price and Depot and is part of the assessable value and appropriate duty paid has to be paid thereon. In this case the freight element which is claimed as deduction is to be included in the assessable value. Accordingly same has been worked out and the correct assessable value is redtermined in terms of Section 4 of Central Excises Act, 1944 and on which the Central Excise duty has to be determined and recovered from the assessee. and ordered the approval of prices after including such price on assessable value.

(2.) THE Commissioner (Appeals) after considering the matter came to the following findings:

(3.) WHEN the matter was called none appeared for the appellants. However a letter dated 8.4.2003 was submitted requesting to consider the matter based on the appeal memo on merits. After hearing the learned SDR for Revenue, it is found -