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TMI Blog2017 (10) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of the purchase order, the appellant is required to deliver the goods at the premises of the buyer and has to bear all liability upto the delivery point - in the instant case, the goods have been sold in terms of section 4(1)(a) except that the excisable goods are to be delivered at the buyers premises. Rule 5 makes it clear that the cost of transportation from the factory gate upto the place of delivery is to be excluded computing the assessable value - freight charges not to be included in the assessable value for the purpose of excise duty. Explanation 2 to Rule 5 will not be applicable in the facts of the present case since, the place of removal is factory gate and not the premises of buyer of goods. Appeal allowed - decided in fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned DR for the Revenue. 4. After hearing both the sides, it appears that the issue for decision is whether the freight charges from the factory gate to the premises of the buyer have to be included in the assessable value of the goods for charging excise duty. Revenue is of the view that the freight charges are includible for the reason that the purchase order specifies that the liability for any loss /damage of the goods remains with the appellant till the delivery of goods at the buyers premises. However, the contention of the appellant is that the sale of goods has taken place at the factory gate and hence, there is no basis for addition of any freight charges. Further, it has been submitted that in terms of section 19 of the Sale of G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances specified in clause (a) of sub-section (1) of section 4 of the Act except the circumstances in which the excisable goods are sold for delivery at a place other than the place of removal, then the value of such excisable goods shall be deemed to be the transaction value, excluding the cost of transportation from the place of removal upto the place of delivery of such excisable goods. Explanation 1. - Explanation 2. - For removal of doubts, it is clarified that the cost of transportation from the factory to the place of removal, where the factory is not the place of removal, shall not be excluded for the purposes of determining the value of the excisable goods.]" 6. The relevant question which arises is - what is the plac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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