COMMISSIONER OF CENTRAL EXCISE, VADODARA Vs. AMOD INDUSTRIES

JUDGEMENT

(1.) THE short question involved in the present appeal of the Revenue is as to whether the excess freight claimed as deduction by the appellant than the actual freight incurred by them would form part of the assessable value of the final product or not. Commissioner (Appeals) has granted relief to the respondent by following the Honble Supreme Court decision in case of Baroda Electric Meters Ltd. v. CCE reported in 1997 (94) E.L.T. 13 (S.C.). He has also observed that there is nothing on record to show that the excess recovery of freight charges is towards the cost of the final product cleared by the respondent. We find that the Revenue in their appeal memo has not referred to or relied upon any evidence to show that such excess recovered freight charges were additional consideration for the cost of the goods. Reference has been made to Rule 5 of the Central Excise Valuation Rules, 2002. However, we find that Tribunal in case of Majestic Auto Ltd. v. CCE, Meerut reported in 2003 (160) E.L.T. 541 (T) = 2003 (57) RLT 19 (CEGAT -Del.) has held that equalised freight is not required to be added in the assessable value of final product ever after 1 -7 -2000. As such, we do not find any infirmity in the impugned order of Commissioner (Appeals) and, accordingly, reject the appeal filed by the Revenue.