Cce/Raipur vs M/S.Navbharat Explosive Co.Ltd

IN THE CUSPTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI, PRINCIPAL BENCH NEW DELHI

Date of Hearing/Decision:16.09.2015

Excise Cross/140/2006, E/Cross/141/2006 and E/CO/142-144/2006

In Appeals Nos.E/2074, 2075 and 2076-2079/2006

[Arising out of Order-in-Appeal No.48-49/RPR-I/2006 dated 20.03.2006 in Appeal No.E/2074-2075/2006 and Order-in-Appeal No.46-47/RPR-I/2006 dated 20.03.2006 in Appeal No.E/2076- 2077/2006 and Order-in-Appeal No.44-45/RPR-I/2006 dated 20.03.2006 in Appeal No.E/2078-2079/2006, passed by the Commissioner of Central Excise (Appeals-I), Raipur(C.G.)].

CCE/Raipur .Appellants

Vs.

M/s.Navbharat Explosive Co.Ltd. Respondent

Appearance:

Rep. by Shri R.K. Grover, AR for the appellants.

Rep. by none for the respondent.

For approval and signature:

Honble Shri Ashok Jindal, Member (Judicial)

Honble Shri B. Ravichandran, Member (Technical)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

Coram: Honble Shri Ashok Jindal, Member (Judicial)

Honble Shri B. Ravichandran, Member (Technical)

Final Orders Nos.52877-52882/2015 dated:16.09.2015

Per Ashok Jindal:

The Revenue is in appeal against the impugned orders. The respondent have also filed cross objections to the appeals filed by the Revenue.

2. The facts of the case are that the respondents are manufacturers of explosives, which have been sold to Coal India Ltd. against the purchase orders on ex-factory price basis. The respondents charge some amount on account of freight/packing and forwarding charges from M/s.Coal India Ltd. separately. The revenue is of the view that these charges are includible in the assessable value under Rule 5 of the Central Excise Valuation Rules, 2000 read with Section 4(1)(b) of the Central Excise Act, 1944. Therefore, the impugned proceedings were initiated against the respondents. The Adjudicating Authority held that the freight and packing charges are includible in the assessable value. Consequently, the demand of duty along with interest was confirmed and penalties were also imposed. On appeal before the ld. Commissioner (Appeals), the adjudicated orders were set aside. Aggrieved from the said orders, the Revenue is in appeals. The respondents have also filed cross objections.

3. Heard the ld. AR and perused the records.

4. On perusal of the records, we find that as per the purchase orders, the price of the goods is ex factory gate. The invoices also show that the goods are sold at ex factory and transportation/packing charges were charged by the respondent separately from M/s. Coal India Ltd. As the goods have been sold at factory gate in that case, Rule 5 of the Central Excise Valuation Rules, 2000 is not applicable to the facts of this case. Therefore, the transportation/packing charges shall not form part of the transaction value. The ld. Commissioner (Appeals) has held so. Therefore, we do not find any infirmity with the impugned orders. The same are upheld. The appeals filed by the Revenue are dismissed. Cross objections are also disposed of in the same manner.

[Order dictated & pronounced in open court]

( Ashok Jindal )

Member (Judicial)

( B. Ravichandran)

Member (Technical)

Ckp.

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