Determination of Assessable value - Equalisation of freight in cases of multi product, multi factory companies

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..... dated 14/1/97 F.No. 6/55/96-CX.1 Government of India Ministry of Finance Department of Revenue, New Delhi Subject : Determination of Assessable value - Equalisation of freight in cases of multi product, multi factory companies Sub-Section (2) of Section 4 of the Central Excise Act, 1944 provides for exclusion of the cost of transportation from .....

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..... at the factory gate, the averaged freight included in such wholesale cash price has to be deducted in order to arrive at the real wholesale cash price at the factory gate and no excise duty can be charged on it. "(Para 50). 3. Now a question has arisen how the deduction on account of freight has to be allowed in respect of multi-product, multi-factory companies where it may not be possible to w .....

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..... examined and it is felt that in multi-products and multi-location factories if equalised freight cannot be worked product wise, the principle laid down by the CEGAT in above said decision may be followed to work out equalised freight/averaged freight for the purposes of Section 4(2) of Central Excise Act, 1944. 5. For removal of any doubt, it is further clarified that the deduction of equalise .....

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