COMMISSIONER OF CENTRAL EXCISE Vs. MAJESTIC AUTO LTD.

JUDGEMENT

(1.) THE short question that arises for consideration in this appeal is whether the expenses incurred by the assessee in transporting the goods meant for export is to be deducted from the price of the goods sold for domestic consumption to find out its assessable value.

(2.) RESPONDENT manufactures two wheeled motor vehicles. Certain quantities manufactured by them are meant for export. The rest are sold in the domestic market after payment of central excise duty. The dispute in this appeal is with regard to valuation of the goods sold in the domestic market. The assessee respondent claimed certain deductions from the sale price stating that freight on equalised basis is to be allowed deduction while computing assessable value. The quantity sold for export are removed from the factory to the harbour. Transportation charges for taking those two wheelers from the factory to the harbour was also sought to be included for computing the freight to be deducted while fixing the assessable value of two wheelers sold to dealers for domestic consumption. According to the respondent, even though the freight charges realized from the dealers are not fully utilised towards the expenditure for transport, he is entitled to have them excluded from the assessable value relying on the principles stated by the Tribunal in Baroda Electric Meters Ltd. v. CCE, Ahmedabad, : 1996 (85) E.L.T. 363.

(3.) LEARNED Counsel representing the respondent vehemently relied on Final Order No. 860/99 -A, dated 11 -6 -1999 passed by this Tribunal in Appeal E/2298/97 -A to support his argument that transportation charges incurred by him in relation to exported goods can be excluded from the assessable value of the goods sold for domestic consumption. On going through that order, we do not find anything to support the contention of the Learned Counsel that this Tribunal took the view that in finding out the assessable value of the goods sold for domestic consumption, freight incurred on export goods should be excluded. So, that final order is not of any assistance to the contention raised by the Learned Counsel. According to the Learned Counsel, the Department had gone in appeal to the Supreme Court against the above said final order and that his client had received notice from the Supreme Court. The fact that an appeal has been filed by the Department against Final Order No. 860/99 -A, dated 11 -6 -1999 will not, in any way, go to establish the tact that this Tribunal took the view in that order that the freight incurred by the manufacturer in relation to export goods are deductible from the price of goods sold for domestic consumption. The decision in Baroda Electric Meters case is to the effect that if the manufacturer realises transportation charges from the dealers on an equalised basis and if the whole amount is not utilised, the un -utilised part cannot go to augment the assessable value. That decision has nothing to do with the present case which relates to freight incurred by the manufacturer who sells a portion of the goods manufactured by him by way of export.