Aniruddha Bose, J. - (1.) The present appeal is against a decision of the Customs, Excise and Service Tax Appellate Tribunal, Kolkata (CESTAT) confirming the stand of the Revenue that for the purpose of applying the exemption provisions contained in Notification No. 32/99-C.E., dated 8-7-1999, excise duty is to be levied on the value of goods at the removal point and not at the point of delivery. The latter in this case is the consumers' entry point and the former is the factory exit of the manufacturer. The appellant is engaged in the business of manufacture of Ferro Alloys, falling under Chapter 72 of Central Excise Tariff Act, 1985. Their manufacturing unit is situated in the district of Ribhoi, Meghalaya to which the aforesaid notification is applicable. Applicability of that exemption notification is not in dispute in this appeal. The controversy is over determination of value of the goods for the purpose of levy of excise duty. The appellant delivered their products, inter alia, to a unit in Durgapur in the State of West Bengal. The appellant, however, calculated and claims to have paid excise duty on value of goods including therein the freight and insurance charges. In terms of the exemption notification, the excise duty paid in that manner was refunded to the appellant. Stand of the Central Excise authority, however, is that for the purpose of valuation of goods, freight and insurance charges ought to have had been excluded and refund was to be made without computing therein the aforesaid charges. On that basis, show cause notice was issued charging the appellant with overvaluation and misdeclaration. The first adjudicating authority held :- In view of the above I find that duty on freight charges was not required to be paid by the assessee and consequently the same should not have been refunded by the Department. Therefore the same is recoverable under Section 11A read with proviso to the Section from the assessee. Interest has also to be recovered from the assessee on the erroneous amount at the applicable rate, under Section 11AB of the Act. I also hold that the assessee is liable for penalty under Section 11AC of the Act."
(2.) In coming to that finding, the first adjudicating authority opined that price of the goods were to be taken into account for the purpose of levy of excise duty at the removal point being the factory gate of the appellant and not the entry point of the customers. The assessee's appeal was dismissed by the CESTAT confirming the finding of the Commissioner.
(3.) The questions suggested for admission of appeal by the appellant are primarily on determination of the point at which excise duty ought to be levied. We do not find any error in the findings of the adjudicating authority and the First Appellate Authority on this point.;