Separate freight disclosure excludes transportation profit from assessable value under excise valuation principles.

Where freight is separately disclosed in invoices and goods are transported in the assessee's own vehicles, any excess amount collected as transportation profit is not includible in the assessable value of excisable goods. The settled position applied is that separately shown freight does not form part of the assessable value merely because the assessee earns a margin over actual transport cost. On that basis, the transportation profit was excluded from valuation and the demand remained dropped.

---

---

Issues: Whether the profit earned on transportation charges, where freight was separately shown in the invoices and goods were transported in the assessee's own vehicles, was includible in the assessable value of the excisable goods.

Analysis: The freight component was shown separately in the invoices and the goods were transported by the assessee in its own vehicles. The transportation profit was treated as excess freight and the issue was governed by the settled position that where freight is separately disclosed, any amount collected over and above actual transportation cost is not includible in the assessable value.

Conclusion: The profit earned on transportation charges was not includible in the assessable value. The Revenue's appeal failed and the order dropping the demand was sustained.

---