Per Justice K. Sreedharan :

Appellant, M/s. Escorts JCB Ltd. are engaged in the manufacture of Excavators Loaders. Central Excise Officers of Anti Evasion Branch, Faridabad visited their premises and came across some invoices. Insurance policies taken out from the appellants premises showed that goods sold by them were insured with National Insurance Company Ltd. till the goods reached buyers premises. On that basis it was held that property in the goods solddid not pass from the appellants to the buyer till the goods reached the premises of the buyer. So the value of the goods at the place where it was sold should be the basis for assessment to duty under Central Excise Act. Assessments were not made taking note of the said value upto the date of inspection by the authorities. It was also found that towards transit insurance charges .40% of the invoice value was realised while .13% alone was actually spent towards insurance charges. On this ground show cause notice dated 24.3.98 was issued to the appellant calling upon them why -

(i) Central Excise duty amounting to Rs. 29,65,532 on value of Rs. 2,61,60,197 (as per details given in Annexure V VI), not included in the assessab