2013 (8) TMI 977 - AT - Central Excise

Summary

Issues involved: Appeal against demand of excise duty on to-and-fro freight charges, applicability of Rule 5 of Central Excise Valuation Rules, 2000, determination of 'place of removal' for assessable value calculation.

Summary:
The Revenue filed an appeal against an order setting aside the demand of excise duty on to-and-fro freight charges. The appellant argued that under Rule 5 of the Central Excise Valuation Rules, 2000, transportation costs can be excluded from assessable value if shown separately in invoices. The appellant claimed deduction towards freight charges on a to-and-fro basis, which the Revenue contended were not actual costs. The lower appellate authority did not consider the terms of purchase and sale in determining the 'place of removal,' leading to a remand for reevaluation.

Upon reviewing the invoices, it was found that the appellant transferred goods to their branches/depots, with transportation costs up to these locations being includable in the taxable value. The terms of sale, specifically whether goods were to be delivered ex-works or at the buyer's premises, were not clear from the invoices. The 'place of removal' would depend on these terms, impacting the assessable value. The matter was remanded to the adjudicating authority to consider the terms of sale for each transaction and determine the 'place of removal' accordingly.

The appeal was allowed by way of remand, with the matter to be reexamined based on the terms of purchase and sale for different transactions. The decision emphasized the importance of considering the terms and conditions of sale in determining the assessable value for excise duty calculation.