ORDER
S.L. Peeran, Member (J)
1. Both the appeals arise from Order-in-Appeal No. 128/2004 (H-III) CE dated 30.7.2004. The Commissioner (Appeals) after due examination of the case laws has confirmed the Order-in-Original directing the assessee to include freight and insurance charges upto the point of sale i.e. up to the buyer’s premises where sale has taken place, in the assessable value, is not justified.
2. The assessee’s contention is that their sales have taken place at factory gate and therefore freight and insurance charges are not to be added in the assessable value in consonance with the Apex Court judgment rendered in the cases of Escorts JCB Ltd. v. CCE, Delhi-III ; VIP Industries Ltd. v. CCE, Aurangabad and Board Circular No. 59/1/2003-CX dated 3.3.2003. The Commissioner after detailed examination of the facts has found that the assessee had received a purchase order from Bharat Sanchar Nigam Ltd. for supply of DDF Frames and modules, which inter-alia stipulates that the prices indicated are inclusive of Excise duty, ST, other statutory duties, levies, packing and forwarding charges, freight and insurance charges, etc. and the mode of transport is by road. The assessee had shown the place of removal as factory gate and not that of as purchaser’s place. The Commissioner (Appeals) has accepted the contention that the freight and insurance charges are not to be added in the light of the judgments cited supra. The Revenue aggrieved with this order has filed the appeal for setting aside the same. They contended that the place of removal and point of sale in the present case is that the purchaser’s place and not the factory gate.
3. On a careful consideration of the submissions made by both the sides, we do not agree with the contention that the place of removal should be considered as the place of purchaser’s place. The Commissioner (Appeals) has examined the facts carefully and correctly applied the ratio of the Apex Court judgments and Board Circular. In terms of the contract of the sale, the place of removal is factory gate. Therefore freight and insurance charges are not required to be added in the assessable value. The Order of the Commissioner (Appeals) is legal and proper. There is no merit in the appeal and the same is rejected.
(Pronounced and dictated in the open Court).