Post-removal freight and transit insurance are excluded from assessable value for central excise valuation.

Freight and transit insurance charges incurred for delivery of goods from the factory gate to customers' premises are not includable in the assessable value for central excise duty where they relate to post-removal transport and delivery beyond the place of removal. The valuation issue under Section 4 of the Central Excise Act, 1944 was resolved by treating such expenses as outside the value of the goods at the place of removal, so deductions claimed for freight and insurance could not be added back for duty computation.

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Issues: Whether freight and transit insurance charges incurred for delivery of goods from the factory gate to the customers' premises were includable in the assessable value for central excise duty.

Analysis: The dispute turned on valuation under Section 4 of the Central Excise Act, 1944. The Tribunal noted that the charges recovered towards transportation and transit insurance were linked to delivery of the goods to the customers' premises and were not part of the value of the goods at the place of removal. Following the settled view that such post-removal expenses are not includable in assessable value, the Tribunal held that the deductions claimed on account of freight and insurance could not be added back for duty computation.

Conclusion: The freight and transit insurance charges were not includable in the assessable value, and the Revenue's appeal failed.

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