Full Judgment
1. The appellant manufactures electric transformers and supplies these to the Gujarat State Electricity Board. The purchase orders of the Gujarat State Electricity Board indicated, in addition to the price, a specific amount in each contract, towards freight. Thus for example, the price in contract in Order No. SP 2725/11/1446 was Rs. 13,200 per transformer and freight Rs. 200 per transformer. The department discovered that the amount incurred as freight by the appellant was less than the sum mentioned towards freight in the contract in the electricity board. It therefore concluded that the difference between the amount indicated for the freight and the freight actually incurred would form part of the assessable value. Notice was issued proposing recovery of the duty on this amount. In due course the Additional Collector confirmed the demand holding that the difference between the amount indicated as prayed in the contract and the amount should form part of the assessable value. He also imposed a penalty on the appellant. Hence this appeal.
2. We are of the view that the issue is covered by the decision of the Supreme Court in Baroda Electric Meters Ltd. v. CCE, .
The Supreme Court has set aside the decision of the Tribunal expressing the opposite view. In accordance with the decision of the Supreme Court we hold that the differential amount cannot be part of the assessable value. We allow the appeal and set aside the impugned order.