CCE Vs. ALVITTAS ELECTRICALS (P) LTD.

JUDGEMENT

(1.) This appeal of the Revenue is against dropping of a demand of duty of Rs. 83,235/ - on the respondents for the period 1990 -1991 and 1991 -1992. The original authority had demanded this duty from the respondents consequential to a value addition in respect of the goods removed from their factory during the above period. The value addition was that of excess freight charges collected by them from their customers. The assessee challenged this value addition in an appeal preferred to the Collector (Appeals) and the latter set aside the demand of duty after holding that, as ex -factory price of the goods was available, there was no need to re -determine the assessable value. The lower appellate authority relied on the Supreme Court's ruling rendered in the case of Indian Oxygen Ltd. 1998 (36) ELT 723 (SC). The present appeal is against this decision of the lower appellate authority.

(2.) In this appeal, it is contended that the Supreme Court's ruling in Indian Oxygen (Supra) is not squarely applicable to the facts of this case. It is pointed out that, while, in the case considered by the Apex Court, there was a firm ex -factory price which formed the basis of assessment, no such price is available in the present case. It is stated that the basis of assessment in the instant case is a contracted price and that any ex -factory price in terms of Section 4(1)(a) of the Central Excise Act, 1944 is not known in this case. The excess freight charged by the assessee from their buyers for transportation of the goods from the factory gate is to be treated as additional consideration flowing to the assessee and the same requires to be included in the assessable value of the goods. This contention of the appellant has been reiterated by the SDR.

(3.) The Id. C.A. Shri P.C. Anand has, on the other hand, submitted that the issue is no longer res integra as it stands covered, in favour of the assessee, by numerous decisions of the Apex Court. He has cited, for instance, the Apex Court's decision in the case of M/s Baroda Electric Meters .