Excise not payable on freight paid towards transportation of goods from place of removal to buyer’s premises

Jindal Tubular (India) Limited Vs Principal Commissioner (CESTAT Delhi)

Held that freight incurred from the place of removal to the buyer’s premises is not includible in the assessable value and accordingly excise is not payable on the same.

Facts-

The appellant has supplied the goods on which it paid excise duty to the customers on FOR destination basis. In other words, in such contracts the appellant was required to deliver the goods at the buyer’s premises and not its factory gate. The question is whether cost of freight from the factory/depot of the appellant to the customer’s premises is includible in the assessable value for calculating the central excise duty.

Secondly, amount of rent-a-cab service is claimed by the appellant as input services is sought to be denied by the impugned order.

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