Transport-linked receipts and factory-gate sales do not form part of excise assessable value without buyer consideration.

Amounts received in relation to transportation are treated separately from the sale price where goods are sold ex-factory and the sale is completed at the factory gate. The article explains that, in the absence of evidence that any additional consideration flowed back from buyers, a transport-linked receipt cannot be added to the assessable value of finished goods for central excise valuation. The relevant distinction is between consideration for the goods themselves and a sum arising under a freight arrangement, with only the former forming part of assessable value under excise law.

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Issues: Whether the 3% amount received by the assessee from transporters in relation to freight was includible in the assessable value of the finished goods for central excise purposes.

Analysis: The sales were found to be ex-factory and completed at the factory gate, with the buyer relationship not extending to the transport arrangement. The amount in question arose from the transport contract and was linked to transportation, not to the sale price of the goods. In the absence of evidence that any additional consideration flowed back from the buyers, the receipt could not be treated as part of the assessable value under the excise valuation provision.

Conclusion: The 3% amount was not liable to be included in the assessable value, and the Revenue's challenge failed.

Final Conclusion: The impugned order setting aside the duty demand was upheld, and the Revenue's appeal was dismissed.

Ratio Decidendi: Amounts received in relation to transportation, where the sale is completed at the factory gate and no additional consideration flows from the buyer, are not includible in the assessable value under excise law.

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