Freight and/or Insurance Charges shown separately in invoice is not includable in  assessable value of Excisable Goods: CESTAT [Read Order]

The  Ahmedabad Bench Of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that  freight and /or insurance charges shown separately in the invoice is not includable in assessable value of the excisable goods.

The appellant Sayaji Senthness Ltd filed the appeal. The issue involved in the present case is that whether the freight and/or insurance charges is includable in the assessable value of excisable goods in the fact that the sale of goods is on ex-factory basis.

During the pendency of appeal the Amal Dave, counsel for appellant submitted that appellant had cleared the goods from their factory and delivered at the buyer’s premises. In the invoice the freight was charged separately when the sell invoice was issued from the factory at the time of clearances of goods. The factory gate is the place of removal.

Merely because the appellant is under obligation to deliver the goods at the buyer’s premises, the place of removal which is a factory gate cannot be extended and buyer’s premises cannot be made as place of removal. Further the payment of insurance charges or freight charges cannot be criteria for deciding the place of removal.

H P Shrimali, appeared for the respondent and supported the order of lower authorities.

After analyzing the arguments and submission of both parties  The two member bench of Ramesh Nair (Judicial) and  Raju (Technical)  observed that  freight and /or insurance charges shown separately in the invoice s not includable in assessable value of the excisable goods.

To Read the full text of the Order CLICK HERE

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