Determination of equalised freight - Instructions regarding - Central Excise - 14/88-CX.1

Determination of equalised freight - Instructions regarding Circular No. 14/88-CX.1 Dated 25-4-1988 [From F. No. 6/56/87-CX.1] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Determination of equalised freight - Instructions regarding. I am directed to say that doubts have been raised as to whether equalised freight/average freight, which is eligible for deductions under Section 4(2) of the Central Excises Salt Act, 1944 could be calculated on the basis of previous years' actual freight figures or not. 2. The matter has been examined by the Board in consultation with the Law Ministry. The Law Ministry have opined (copy enclosed, not printed here) that calculation of average freight/equalised freight on the basis of previous years' actual transportation charges for purposes of Section 4(2), is permissible provided the total expenses on transportation so claimed on such averages do not finally exceed the actual expenses incurred on transportation in the current year. In other words, deductions on account of transportation will finally be restricted to actual expenses. 3. Field formations may be suitably informed. 4. Receipt of these instructions may kindly be acknowledged. (This disposes of CCE, Bangalore's reference C. No. IV/1/32/87 C V, dated 30-11-1987 on the above subject).