Transportation charges up to buyer’s premise, if included in agreed price, count towards assessable value
The CESTAT, Kolkata, in M/s Satya Megha Ispat Pvt. Ltd. v. Commissioner of Central Excise [Excise Appeal No. 71484 of 2013 dated August 04, 2023] set aside the refund rejection order and held that in case where the sale took place at the buyer’s premises after accepting the goods post inspection, the price charged by the assessee till the place of sale including freight, etc.
Facts:
M/s. Satya Megha Ispat Pvt. Ltd. (“the Appellant”) is engaged in the manufacturing of Ferro Silicon, MS Ingot and Runner& Risers, located in the notified area declared under Notification No.32/99-CE dated July 08, 1999 and was eligible for the exemption by way of refund of duty paid out of account current for a period not exceeding 10 years from the date of commercial production and the Appellant was availing the said benefit.
The Appellant was selling finished goods at fright on road (“FOR”) price which includes all the expenses up to the place of delivery for which the Appellant has valued the price of the finished goods including the freight element in the selling price. The Appellant paid the duty and claimed refund during the period September 2005 to June 2010 where all duty was paid in cash.
The Revenue Department (“the Respondent”) issued the show cause notice (“the SCN”) demanding back the erroneously refund claimed of INR 36,18,110/- by way of overvaluing the goods by including freight charges in the assessable value which is in violation of Rule 5 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (“the Valuation Rules”).
The Adjudicating Authority vide an order (“the Order”) confirmed the demand along with interest and penalty.
Aggrieved by the Order, the Appellant filed an appeal before the Appellate Authority who vide an order (“the Impugned Order”) confirmed the order passed by the Adjudicating Authority.
Aggrieved by the Impugned Order, the Appellant filed an appeal before the CESTAT, Kolkata for quashing the Impugned order.
Issue:
Whether transportation charges are the part of assessable value sold on a FOR basis?
Held:
The CESTAT, Kolkata, in Excise Appeal No. 71484 of 2013 held as under:
(Author can be reached at [email protected])
DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.
_________________________________________________________________________________
🥳 Celebrate Independence Day with Our Exclusive Offer!
🔥 Limited-Time Offer: Grab a Special Deal on our Comprehensive GST Courses!
1️⃣ “GST Input Tax Credit (ITC)” 📚📹A total of 3 Recorded Sessions (3 Hours each), will be available for 18 hours or 60 Days whichever expires earlier🎁 Register Now: https://www.a2ztaxcorp.in/product/gst-input-tax-credit/
2️⃣ “Scrutiny Notices, Assessment, Audit, Inspection, Search, Seizure and Arrest under GST” 📊📹A total of 4 Recorded Sessions (3 Hours each), will be available for 24 hours or 60 Days whichever expires earlier🎁 Register Now: https://www.a2ztaxcorp.in/product/gst-course-new/
👨🏻🏫 Led by Renowned Adv (CA) Bimal Jain
📌 Hurry! Special Independence Day Offer Valid Until August 20, 2023
📝 Course Highlights:
✔️ Get an Exclusive E-Certificate✔️ Dive into Comprehensive Background Material (PDF)✔️ Stay Updated with Free GST Updates for 1 Year via WhatsApp, Telegram, and E-mail✔️ Hindi/English Medium✔️ Avail a Spectacular 45% Discount on the Latest ‘GST Law and Commentary with Analysis and Procedures’ – May 2023 Edition
📞 For Details or Queries:☎️ 8076563802, 011 42427056📧 Email: [email protected], [email protected]
💥 Don’t Miss Out on This Incredible Opportunity to Enhance Your GST Expertise! 💥
Bimal has more than 21 years of experience in Indirect Taxation – GST, Service tax, Excise, Customs, VAT/CST, Foreign Trade Policy, DGFT matters, etc.
Save my name, email, and website in this browser for the next time I comment.
Notify me of follow-up comments by email.
Notify me of new posts by email.
M/s Satya Megha Ispat Pvt. Ltd. v. Commissioner of Central Excise [Excise Appeal No. 71484 of 2013 dated August 04, 2023] Facts:(“the Appellant”) “FOR”(“the Respondent”) (“the SCN”)“the Valuation Rules”(“the Order”) (“the Impugned Order”) Issue:Held:Excise Appeal No. 71484 of 2013 RNB Carbides &Ferro Alloys Pvt. Ltd [Excise Appeal Nos. 187, 188 of 2010](Author can be reached at [email protected])DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.🥳 Celebrate Independence Day with Our Exclusive Offer!🔥 Limited-Time Offer:1️⃣ “GST Input Tax Credit (ITC)” 📚📹2️⃣ “Scrutiny Notices, Assessment, Audit, Inspection, Search, Seizure and Arrest under GST”👨🏻🏫 Led by Renowned Adv (CA) Bimal Jain📌 Hurry! Special Independence Day Offer Valid Until August 20, 2023📝 Course Highlights: