LAKHANPAL NATIONAL LTD. Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) THE issue relates to whether freight and insurance charges incurred while transporting the goods from the factory gate to the depots from where the goods are sold, should be added to the assessable value of the goods after Section 4 of Central Excise Act was amended w.e.f. 28 -9 -1996 or not. The said amendment inter alia enabled the Department to charge Central Excise duty on the value at which goods are cleared from a depot.

(2.) THE appellants were clearing their goods into domestic market from their depots. After the amendment to Section 4 w.e.f. 28 -9 -96, they started including the freight and transit insurance expenses incurred by them while transporting the excisable goods from the factory gate to the depots, in the assessable value and discharged Central Excise duty accordingly. The appellants claim that they were compelled to do so and paid the said duty under protest.

(3.) THE appellant filed applications for refund dated 30 -4 -97 for Rs. 5,28,397.58 and Rs. 9,34,903.62 being the amounts of duty paid by them on the freight and transit insurance charges from the factory gate to the depot.