SAVEAIR INDIA LTD. Vs. C.C.E.

JUDGEMENT

(1.) SHRI R. Krishnan, learned Advocate, submitted that M/s. Saveair India Ltd., manufactured parts of air -conditioning system, exhaust units and scrap of iron and aluminium and availed MODVAT Credit of the duty paid on the inputs; that they were selling their finished goods on F.O.R. destination basis and have taken transit risk insurance policy for covering the risk of the goods from factory gate to the customer site. The Revenue has confirmed the demand of duty by including the cost of freight and insurance in the assessable value. The learned Advocate, further, submitted that the issue stands decided by the Supreme Court in the case of Escorts JCB Ltd. v. CCE, 2002 (146) ELT 31 (SC) wherein it has been held that the ownership property has no relevance in so far as insurance of goods sold, during transit, is concerned and that the view that the ownership in the property continues to be retained by the assessee till it is delivered to the buyer for the reason that the assessee has arranged for the transport and the transit insurance, is not sustainable; that the Tribunal also, in their own case vide Final Order No. 500/04 -NB dated 26.5.2004, has allowed their appeal on this point.

(2.) THE learned Advocate mentioned that Modvat Credit has been disallowed to them on the ground that they had sent inputs to the job worker, who has paid the duty which was not required to be paid by the job worker under Notification No. 214/86 -CE; that the Tribunal vide Final Order dated 26.5.04 has also allowed their appeal in this regard by following the decision of the Tribunal in the case of CCE, Chandigarh, v. Ranbaxy Labs. Ltd., 2004 (60) RLT 127.

(3.) SMT . Krishna A. Mishra, learned SDR, submitted that the job worker had paid duty only in respect of inputs used by him in process the goods received from the appellants. He had not included the value of the inputs received by him from the appellants; that, accordingly, the payment of duty by the job worker was not appropriate payment of which credit cannot be taken up the appellants.