COMMISSIONER OF CENTRAL EXCISE, NOIDA versus M/S. ACCURATE METERS LTD.

COMMISSIONER OF CENTRAL EXCISE, NOIDA versus M/S. ACCURATE METERS LTD.

Where goods are sold ex-factory with separate contracts for transportation and transit insurance, and charges are not actual but average/equalized, such charges cannot be included in assessable value for calculation of excise duty if they are shown separately to buyer.

Parties
Appellant: COMMISSIONER OF CENTRAL EXCISE, NOIDA; Respondent: M/S. ACCURATE METERS LTD.
Jurisdiction
India
Judgment Date
03 March 2009
Procedural Posture
Civil Appeal / Appeal From Customs, Excise & Service Tax Appellate Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
Excise Valuation, Sale of Goods, Transportation and Insurance Charges
Tax Commercial Excise Valuation Sale of Goods Transportation and Insurance Charges

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Parties

COMMISSIONER OF CENTRAL EXCISE, NOIDA

Appellant

M/S. ACCURATE METERS LTD.

Respondent

Procedural Posture

Civil Appeal / Appeal From Customs, Excise & Service Tax Appellate Tribunal Judgment

Legal Issues

  1. 1 Whether 'freight' and 'insurance charges' constitute the value of goods for computation of Excise Duty under Central Excise Act, 1944 and Rules

Ratio Decidendi

Where goods are sold ex-factory with separate contracts for transportation and transit insurance, and charges are not actual but average/equalized, such charges cannot be included in assessable value for calculation of excise duty if they are shown separately to buyer.

Court Disposition

Appeal dismissed

Orders

  • Authority in appeal and Tribunal correctly excluded transportation and insurance charges from valuation; costs assessed at Rs.25,000/-