Transportation charges separately recovered were excluded from excise assessable value where they were proved to be freight charges.

Transportation charges recovered separately from customers do not form part of the assessable value for excise duty when the amounts are shown to be freight charges and no contrary factual basis for inclusion is established. The lower authority's relied-upon decision was found inapplicable because, on its facts, the additional amounts were not treated as freight. On the stated facts, the charges were excluded from assessable value, and the issue was decided in favour of the appellant.

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Issues: Whether transportation charges recovered separately from customers formed part of the assessable value for levy of excise duty.

Analysis: The transportation charges were recovered separately and there was no finding that the amounts collected were anything other than freight charges. The decision relied upon by the lower authority was found to be inapplicable because, in that case, the additional amounts were not found to be freight charges. It was held that transportation charges do not form part of the assessable value for excise duty where the factual basis for inclusion is absent.

Conclusion: The issue was decided in favour of the appellant and against inclusion of the transportation charges in the assessable value.

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