2024 (7) TMI 1563 - AT - Central Excise

Valuation of Excise duty - inclusion of freight charges shown separately in the invoices and collected from the buyers of the goods in the transaction value of such excisable goods for the purpose of charging excise duty - sale is on FOR basis - HELD THAT - The issue is no more res-integra in view of judgments cited by the learned Counsel particularly the judgment of Hon ble Apex Court in the case of COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, NAGPUR VERSUS M/S ISPAT INDUSTRIES LTD. 2015 (10) TMI 613 - SUPREME COURT wherein the identical facts involved and the sale was on FOR basis, the place of removal was considered as factory gate. Therefore, freight charges shown separately and collected from the customers cannot be included in the assessable value for the purpose of charging excise duty. Accordingly, the demand in the present case is not sustainable. The impugned order is set-aside and the appeal is allowed.

Summary

The Appellate Tribunal CESTAT Ahmedabad ruled that freight charges shown separately in invoices and collected from buyers of goods are not includible in the transaction value for charging excise duty. The judgment cited the case of CCE, Nagpur vs. Ispat Industries Limited. The appeal was allowed, and the impugned order was set aside. (Case citations: M/s. Schneider Electric India Limited, M/s. Sayaji Senthness Limited, M/s. Ispat Industries Limited, M/s. IDMC Limited, M/s. Gujarat Fluorochemicals Limited, M/s. Savita Oil Technologies Limited, M/s. Mira Industries, Eimco Elecon India Limited)