Separately disclosed delivery zone charges were excluded from assessable value under valuation rules requiring distinct invoice disclosure.

Transportation-related charges separately shown in the invoice were not includible in assessable value where the applicable valuation rule required such charges to be separately disclosed. The invoice reflected free delivery zone charges along with other fixed charges, and that disclosure satisfied the statutory requirement in force for the relevant period. The later deletion of the separate-disclosure requirement reinforced the view that inclusion of these charges was not justified for the period under consideration, so the demand could not be sustained.

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Issues: Whether free delivery zone charges separately shown in the invoice were includible in the assessable value under Rule 5 of the Central Excise (Valuation) Rules, 2000.

Analysis: The charges for delivery within the prescribed zone were separately indicated in the invoice along with other OCC-fixed charges. The statutory requirement at the relevant time was that transport charges be separately shown, and this requirement stood satisfied on the facts. The later deletion of the requirement was noted as supporting the view that the impugned inclusion was not justified for the period in question.

Conclusion: The free delivery zone charges were not liable to be added to the assessable value, and the impugned order could not be sustained.

Ratio Decidendi: Where transportation-related charges are separately disclosed in the invoice and the applicable valuation rule requires separate showing of such charges, those charges cannot be added to the assessable value.

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