Place of Removable, Central Excise

[SURYAKANT MITHBAVKAR]

If we have charge freight charges in our invoice which is recover from customer. We have not charge excise duty on the same.

What is impact of new definition of Place of removal under budget 2015.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

CESTAT has held in CCE v. Mainhood Enterprises [2014 (303) ELT 279] = 2014 (10) TMI 301 - CESTAT MUMBAI that if freight is charged separately in invoice, it is not includible in assessable value (transaction value).

A perusal of Finance Bill 2015 does not indicate any amendment has been carried out to definition of place of removal.

[sandeep dixit]

Sir,

In my opinion, it depends upon the terms of the sale / purchase order. In case the sale is on FOR Destination basis, the freight is to be included in the transaction value. if the freight is charged separately in such cases, then excise duty shall have to be paid.