"Transaction value" under Section 4 of the Central Excise, Act, 1944 - As made effective from 1-7-2000 - Abatement/deduction of freight from composite prices - Central Excise - F. No. 6/59/2000-CX. 1

F. No. 6/59/2000-CX. 1 dated 19-12-2000 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : "Transaction value" under Section 4 of the Central Excise, Act, 1944 - As made effective from 1-7-2000 - Abatement/deduction of freight from composite prices. It has been brought to the notice of the Board that some manufacturers of telephone cables who are clearing goods on the basis of the composite price are taking abatement/deduction of the freight which is included in the composite price like central excise duty, sales tax etc. in contravention of Board Instruction No. 354/81/2000-TRU, dated 30-6-2000. 2. In Para 18 of the said instructions dated 30-6-2000, it has been clearly stated that exclusion of cost of transportation is allowed only if the assessee has shown them separately in the invoice and the exclusion is permissible only for the actual cost so charged from his buyers. If the assessee has a system of pricing and sale at uniform prices inclusive of equated freight for delivery at factory gate or elsewhere, no deductions for freight element will be permissible. 3. You should ensure that Board's instructions contained in the letter F. No. 354/81/2000-TRU, dated 30-6-2000 are complied with by all units.