JCT LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE applicant has challenged the order of the Commissioner (Appeals) confirming the demand of duty of Rs. 1,10,725/ - and reducing the penalty to Rs. 20,000/ -.

(2.) THERE is no dispute over the fact that the appellant had recovered the excess amount as transit insurance. Both authorities have found that the appellant had collected transit insurance charges of Rs. 22,02,603/ - as against the actual charges of Rs. 6.17 lacs from the buyers of the goods. As per definition of "transaction value" under Section 4(3)(d) of the Central Excise Act, 1944, the expression transaction value would include in additional to amount charged as price, any amount that the buyer was liable to pay to, or on behalf of, the as -sessee, by reason of, or in connection with the sale. In the present case, the excess amount has been paid by the buyer in connection with the sale and prima facie, it is liable to be included in the transaction value. The applicant has, therefore, not made out any case for waiver of pre -deposit. It is, therefore, directed that on the applicant's paying duty amount of Rs. 1,10,725/ - within six weeks from today, there shall be waiver of penalty amount payable under the impugned order. Post the matter for compliance report on 17 -7 -06. This application stands disposed of accordingly.