Central excise valuation excludes excess transportation charges recovered from buyers for factory-to-purchaser supply.

Central excise valuation on excess transportation charges was examined for supplies made from a sugar factory to purchasers during March 2003 to December 2003. The issue was whether the additional amount recovered towards transport formed part of the assessable value for excise duty. Following its earlier ruling on the same question, CESTAT held that the excess transportation amount was not liable to central excise duty, as it did not form part of the duty-bearing value of the final products.

---

---

Issues: Whether central excise duty was payable on the excess amount received towards transportation costs of the final products supplied from the sugar factory to purchasers.

Analysis: The relevant period was March 2003 to December 2003. The dispute turned on valuation and whether transportation costs formed part of the amount liable to excise duty. The Tribunal followed its earlier decision on the same issue, which had held in favour of the assessee.

Conclusion: The excess amount received towards transportation costs was not liable to central excise duty, and the assessee succeeded.

---