HINDUSTAN WIRES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE above captioned appeals have been preferred against the common order -in -appeal dated 18 -4 -2001 vide which the Commissioner (Appeals) has affirmed the Order -in -Original passed by the Deputy Commissioner disallowing the exclusion of freight and insurance charges from the assessable value of the goods cleared by the appellants during the period 1 -10 -99 to 31 -3 -2000 and confirmed demand of Rs. 7,43,694/ - with penalty of Rs. 75,000/ - on them.

(2.) THE appellants are engaged in the manufacture of steel wires, LPG cylinders, S.C. valves and regulators. They supplied goods to the companies namely M/s. IOCL, BPCL and HPCL. They supplied cylinders, S.C. valves and regulators to these companies and despatched to their respective places as suggested by them from time to time. It revealed, on scrutiny of their record, that they did not include freight and insurance charges in the assessable value of the goods under Section 4 of the, Excise Act for the period 1 -10 -99 to 31 -3 -2000. They were, accordingly served with a show cause notice for payment of the disputed amount and penalty was proposed to be imposed on them. The Deputy Commissioner who adjudicated the show cause notice confirmed the demand through the Order -in -Original and those orders had been affirmed by the Commissioner (Appeals), through the common Order -in -Appeal.

(3.) THE issue as to whether freight and insurance charges collected by the appellants from the buyers were to be added in the assessable value or not, already stands decided in their favour by the Tribunal in the case of JBM Industries Ltd. v. CCE, New Delhi - 2002 (143) E.L.T. 379 (Tri. - Del.) = 2002 (50) RLT 747. In that case, it has been ruled by the Tribunal that the said charges are not to be added in the assessable value of the goods. That was identical case wherein cylinders were supplied to the oil companies and freight and insurance charges collected from the buyers were not included in the assessable value of the goods, by the appellant -company. The ratio of law laid down in that case is on all fours and completely covers the case of the appellants. Therefore, the impugned order of the Commissioner (Appeals) is set aside. The appeals of the appellants are accepted with consequential relief, if any permissible under the law.