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Issues: Whether the amount of Rs. 44 per KL collected as delivery charges for supplies within the Free Delivery Zone was includible in the assessable value, or whether it was deductible as freight/transportation charges.
Analysis: The dispute turned on the nature of the amount collected for delivery within the Free Delivery Zone. The record showed that the charge was recovered as a delivery-related amount and that the assessee had placed material before the Commissioner indicating that actual freight expenditure was higher than the amount collected. The governing valuation principle under the transaction value regime permits exclusion of transportation cost when it is separately shown, and the cited circular also distinguishes actual transportation cost from uniform equated freight or additional consideration. The Tribunal further noted that prior decisions had consistently held that freight or transport charges, including average or excess freight, are not includible in assessable value where they represent transportation and not an additional price element.
Conclusion: The amount collected for delivery within the Free Delivery Zone was not required to be added to the assessable value, and the Revenue's appeal failed.
Ratio Decidendi: Freight or transportation charges, including excess or averaged freight separately recovered for delivery, are not includible in assessable value unless they constitute an additional consideration for sale.
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