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TMI BlogExcise on Packing & Forwarding chargesX X X X Extracts X X X X X X X X Extracts X X X X ..... Excise on Packing & Forwarding charges X X X X Extracts X X X X X X X X Extracts X X X X ..... opalan Ranganathan: The Reply: Dear Mr. Samik Chaudhuri, According to Section 4 (3) (d) of Central Excise Act, 1944, "transaction value" means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly payable on such goods. Therefore transaction value includes packing and forwarding charges of excisable material for payment of excise duty on the finished goods cleared from the "place of removal." Reply By Naveed S: The Reply: Yes Sir, Packing charges shall form part of the assessable value as it is a charge in connection with production and sale of the goods, recovered from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buyer. Hence, any charges recovered for packing, whether ordinary or special is includible in the transaction value if the same is not included in the price of the goods. In the case of reusable containers (glass bottles, crates etc.), normally the cost is amortized and included in the cost of the product itself. Therefore, the same is not required to be included in the value of the product unle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss it is found that the cost of reusable container has not been amortized and included in the value of the product. However, rental charges or cost of maintenance of reusable metal containers like gas cylinders etc. are to be included in the value since the amount has been charged by reason of, or in connection with the sale of goods. Similarly, cost of containers supplied by the buyer will be i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluded in the transaction value of the goods. X X X X Extracts X X X X X X X X Extracts X X X X
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