Shakti Tubes Ltd. v. CCE

CENTRAL EXCISE ACT, 1944

--Valuation--Place of removalFreight from factory gate to consignment agent's premises ----As per section 4(3)(c)(iii), in case of sale from depot/place of consignment agents, time of removal should be deemed to be time at which goods are cleared from the factory. In case of sale from depot/place of consignment agents, duty should be paid on price prevailing at the depot as on date of removal from factory.--Assessee was engaged in manufacturing of MS Black Pipes and GI Pipes. During Audit, it was found that assessee cleared excisable goods on stock transfer basis to several commission agents appointed by it for sale of same on consignment basis. It was paying duty on the basis of deemed transaction value at factory gate but the sale was taking place at premises of commission agents. Revenue alleged that such premises were place of removal and transportation cost from factory gate to place of removal should be included in assessable value. Held: Admittedly, the definition of place of removal in section 4(3)(c)(iii) was amended with effect from 14-5-2003 to insert the depot/consignment agents in the statute. As per section 4(3)(c)(iii), in case of sale from depot/place of consignment agents, time of removal should be deemed to be time at which goods are cleared from the factory. In case of sale from depot/place of consignment agents, duty should be paid on price prevailing at the depot as on date of removal from factory.