ROOFIT INDUSTRIES LTD. Vs. CC AND CE

JUDGEMENT

(1.) THE adjudicating authority has confirmed a duty demand of Rs. 36,16,318/ - by inclusion of freight and insurance charges in the assessable value of RCC and PSC pipes manufactured and cleared by the appellants herein during the period 1.10.1996 to 30.6.2000 on the ground that the place of removal of finished goods was the buyer's premises and not the factory gate and that therefore the above amounts were required to be included in the assessable value. She has also imposed a penalty of amount equal to duty upon the appellant under the provisions of Section 11AC of the Central Excise Act, 1944.

(2.) ON hearing both sides we find that the issue in dispute is no longer res integra as it has been settled in favour of the assessee by the decision of the Supreme Court in the case of Escorts JCB Ltd. v. CCE, Delhi wherein the Apex Court has held that factory premises of the manufacturer is the place of removal since transaction of sale, payment of price and delivery of goods to the carrier occurred at factory premises, even though transportation of goods and transit insurance was arranged by the seller, namely, the assessee. The Supreme Court reversed the Tribunal's order in which was relied upon by the Commissioner for holding that insurance and freight charges are includable in the assessable value.