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CUSTOMS, EXCISE AND GOLD (CONTROL) APPELLATE TRIBUNAL, NEW DELHI
U.L. BHAT, K. SANKARARAMAN, JJ.
High Polymer Labs -Appellant
Versus
Collector of Central Excise, New Delhi -Respondent
Final Order No. 2124/97-A Appeal No. E/3837/90-A, 2124 of 1997, E/3837 of 1990
Decided On : 12-12-1997
R.C. Gupta,M. Ali
Per Justice U.L. Bhat :
Appellant, engaged in the manufacture of chemicals, was transporting the goods in their own vehicles. Invoice price procedure was being followed during the period in question. Invoices were showing separately the price and forwarding charges. Forwarding charges took in cost of fuel and maintenance of the transport vehicle used by the appellant. Duty was not being paid on the element of forwarding charges. Two show cause notices were issued in respect of two periods proposing demand of duty on the element of forwarding charges and in spite of objection raised by the appellant, demand was confirmed by the Assistant Collector and his order was confirmed by the Collector (Appeals). Hence the present appeal.
2. There is no dispute that charges collected from buyers for transport of goods from the factory to the premises of buyers is not be included in the assessable value. There is also no dispute that excisable goods were being transported by the appellant in the vehicle from the factory to buyers premises. The doubt raised by the lower authorities in the course of their orders was that the vehicle might have been used for other purposes also, that is, purpose other than transport of excisable goods manufactured by the appellant. This doubt did not find place in the show cause notices issued to the appellant. Show cause notice merely asserted that cost of fuel and maintenance of the vehicle is to be included in the assessable value. In these circumstances there is no justification to confirm the demand. The impugned orders are set aside and the appeal is allowed.
