APEX TRADERS Vs. CCE

JUDGEMENT

(1.) APPELLANTS M/s . Apex Traders, in the instant appeal, are challenging the correctness of the impugned Order -in -appeal passed by the Commissioner (Appeals), Ghaziabad, whereby Order -in -original 63/98 dated 26.5.98 passed by the Assistant Commissioner has been set aside.

(2.) THE issue for consideration before the Assistant Commissioner was the quantum of deduction to be permitted on account of excise duty, sales tax and freight for the purposes of arriving at the assessable value of aerated water, manufactured and cleared by them. In the said order, the Assistant Commissioner also decided that abatement claimed by the party from sale price on the rentals on containers (ROC) was permissible in terms of findings contained in the Order -in -original No. 34/ComMr. /97 dated 17.6.97 in the case of M/s . Coolade Beverages Ltd., which in turn was based on Supreme Court's decision in the case of CCE v. Indian Oxygen Limited.

(3.) IT was pleaded before the Assistant Commissioner that deductions on account of freight was claimed at Rs. 0.60 per crate and this was reflected in their depot challans also but this freight was into charged in their final invoices due to commercial reasons although they incurred much higher expenditure on this count. It was pleaded that assessable value be approved based on the factory gate sales which work out to the tune of 25% of the total sale to unrelated and independent buyers. C.A's certificate dated 7.7.95 was produced wherein he element of freight per crate was certified at the rate of Rs. 3/ - for the period April, 94 to March, 95 (till the closure of the factory). The Assistant Commissioner accepted these submissions and approved the price list based on the sale price prevalent at the factory gate.