2023-VIL-1278-CESTAT-CHD-CE
  1. Home
  2. 2023-VIL-1278-CESTAT-CHD-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – Section 4(1)(a) of the Excise Act, 1944 - Valuation - In terms of the dealership agreement the appellant charges separately from the dealers for arranging the transportation of vehicles – Dept of the view that the excess freight collected from the dealers is liable to be included in the assessable value of motorcycles – whether excess freight collected from dealers is includible in the assessable value though this amount was collected from the buyers in connection with the sale of the motorcycles and indicated separately on the invoices – HELD – the excess freight collected by the appellant from the buyer is merely a profit and no excise duty can be levied on such profit – further, the vehicles were sold to the dealers at the ex-factory price and the title is transferred to the buyer at the factory gate and the appellant made arrangement for the transportation of vehicles on the request of the dealers. Since the title in the vehicles is transferred at the factory gate, all the risk of damage during the transportation is that of the dealer and therefore, the assessable value is the transaction value in terms of Section 4(1)(a) of CEA, 1944 and the provisions of Section 4(1)(b) and Valuation Rules are not applicable - the amount of excess freight recovered over and above the total cost of transportation is for totally independent activity and hence no connection with the manufacture or the sale of vehicles and therefore, there is no connection of the excess freight recovered with the transaction value of the vehicle sold by the appellant as the sale was on ex-factory basis - the excess amount collected from the customers cannot be considered as additional consideration to form part of the assessable value - the impugned orders are set aside and the appeals are allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Biweekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

Credit Notes ITC Reversal in IMS…
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?