Place of removal for excise valuation excludes buyer's premises where sale and possession transfer at dispatch point.

Freight charges up to the buyer's premises were held not to form part of the assessable value of air-conditioners cleared under a contract providing FOR station of dispatch delivery. On the stated facts, the goods were handed over to the railways for transport and the consignee was shown as the buyer, so sale and transfer of possession occurred at Delhi. The buyer's out-station premises could not therefore be treated as the place of removal under Section 4 of the Central Excise Act, and the freight element was excluded from assessable value.

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Issues: Whether freight charges up to the buyer's place were includible in the assessable value of air-conditioners cleared under the contract, and whether the buyer's premises could be treated as the place of removal under Section 4 of the Central Excise Act.

Analysis: The goods were supplied under a contract stipulating delivery on FOR station of dispatch, with delivery to the railways for transport and the consignee shown as the buyer. On these facts, sale and handing over of possession took place at Delhi. The place of removal was therefore not the out-station buyer's premises, and the freight element did not form part of the assessable value.

Conclusion: Freight charges were not includible in the assessable value, and the appeal by the Revenue failed.

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