COMMISSIONER OF CENTRAL EXCISE Vs. LAXMI ENGINEERING

JUDGEMENT

(1.) The issue involved in these 2 appeals filed by Revenue is whether the transport charges are to be included in the assessable value of the goods cleared by M/s. Laxmi Engineering.

(2.) When the matter was called no one was present on behalf of the Respondents, nor was there any request for adjournment of the hearing. Further, Shri S.M. Tata, learned SDR, mentioned that the issue involved in the present appeals stands decided by the Supreme Court in the case of Escorts J.C.B. Ltd. v. CCE, Delhi -II, 2002 (146) E.L.T. 31 (SC). We, therefore, heard learned SDR and perused the records.

(3.) The Respondents manufacture electrical transformers. As per the contract with Electricity Board the Respondents were despatching the goods on freight paid basis to the Electricity Board. The Deputy Commissioner under Order -in -Original No. 48/2002, dated 7 -1 -2003 demanded the duty on the element of freight. However, on appeal filed by the Respondents the Commissioner (Appeals) has set aside the Adjudication Order relying upon the decision of the Supreme Court in the case of Escorts J.C.B. (supra) and Tribunal's decision in the case of Associated Strips Ltd. v. CCE, 2002 (143) E.L.T. 131. It has been mentioned in the grounds of appeal that as per Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2002 only actual cost on transportation is admissible from the price of the goods for arriving at the assessable value, if the same is shown separately in the invoice and that deduction of equalised freight is not admissible.