Central excise valuation excludes freight from factory gate to depot where transport is separate from assessable value.

Transportation cost from the factory gate to the depot was excluded from central excise transaction value because Rule 5 of the Central Excise Valuation Rules, 2000 applies only to charges from the place of removal to the place of delivery. The assessee cleared goods both directly to customers and by stock transfer to depots, with freight shown separately. On the facts found, transport from the place of removal was not part of the assessable value, so depot freight was not includible in valuation.

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Issues: Whether the cost of transportation from the factory gate to the depot, being the place of removal, was includible in the transaction value for central excise valuation.

Analysis: The dispute turned on the operation of Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The assessee cleared goods both directly to customers and by stock transfer to depots, and the freight from the factory gate to the depot was shown separately. On the facts found, the cost of transport from the place of removal to the place of delivery was not part of the assessable value.

Conclusion: The transportation charges from the factory gate to the depot were not includible in the transaction value, and the appeal failed.

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