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Case Law Details

Case Name : Chakra Cement Ltd Vs Commissioner of Central Tax Visakhapatnam - GST (CESTAT Hyderabad)
Appeal Number : Excise Appeal No. 30398 of 2022
Date of Judgement/Order : 01/02/2023
Related Assessment Year :
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Chakra Cement Ltd Vs Commissioner of Central Tax Visakhapatnam-GST (CESTAT Hyderabad)

CESTAT Hyderabad held that freight charges for delivering goods to the buyer’s premises is not includible while assessing the value for the purpose of payment of central excise duty.

Facts- The present appeal has been filed to assail the Order-in-Appeal No. 024-2022-23 dated 17.06.2022 vide which the demand of differential duty confirmed on the basis of inclusion of freight charges in the assessable value for payment of central excise duty has been upheld against the appellant.

Conclusion- Hyderabad Tribunal in the case of Commissioner of Central Tax & Customs, Medchal Commissionerate Vs. ICOMM Tele Limited [2019 (7) TMI 55 – CESTAT HYDERABAD] has held that issue of including the freight from seller’s premises to the buyer’s premises, when the sale is for delivery at the buyer’s premises, has been settled at the hands of Hon’ble Apex Court and has reached finality with the following observation: “10….it is now well settled that the buyers’ premises can never be the place of removal, therefore the freight from the factory/depot/consignment agent up to the buyers’ premises cannot be included in the assessable value, even if the goods are sold or delivered at the buyer’s premises.

We hold that the value of freight charged by the appellant for delivering the cement to their buyers’ premises is not to be included while assessing the value for the purpose of payment of central excise duty. Appellant has rightly excluded the same. The differential duty confirmed by the order under challenge is therefore wrong. The impugned order accordingly, is hereby set aside and the appeal is allowed.

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