Assessable value of goods excludes return freight for empty vehicles after delivery, making the valuation demand unsustainable.

Freight charges paid for the return journey of empty vehicles after delivery of goods were held not to form part of the assessable value. The earlier departmental circular of 01.07.2002 had treated such return fare as includible, but the later circular of 19.05.2010 withdrew that view and clarified that the cost need not be added. The cited Supreme Court line of authority also supported exclusion of these charges from valuation. Accordingly, the demand based on inclusion of return-freight charges was unsustainable.

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Issues: Whether the freight charges paid for the return of empty vehicles after delivery of goods were includible in the assessable value of the goods.

Analysis: The demand was founded on the earlier departmental circular dated 01.07.2002, which treated the return fare of empty vehicles as part of the assessable value. The later circular dated 19.05.2010 withdrew that view and clarified that such return-fare cost is not required to be added. The issue had also already been settled by the Supreme Court in the cited line of authority, which supported exclusion of such charges from assessable value.

Conclusion: The freight charges for the return journey of empty vehicles were not includible in the assessable value, and the demand was unsustainable.

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