Equated freight in wholesale price was not deductible from assessable value where it did not reflect actual transport cost.

Equated freight included in a wholesale destination price was not deductible from assessable value because the charge was a fixed amount applied regardless of the actual place of delivery and did not reflect actual transportation cost. Even sales at the factory gate were subjected to proportionate freight, showing that the amount was not identifiable as freight incurred for delivery to destination. On those facts, the freight component could not be excluded from valuation under the Central Excises and Salt Act, 1944, and the order in appeal was upheld.

---

---

Issues: Whether the equated freight included in the wholesale destination price was excludible from the assessable value under section 4 of the Central Excises and Salt Act, 1944.

Analysis: The freight charged was a fixed amount applied irrespective of the actual place of delivery and did not represent the actual freight incurred. It was not identifiable as freight incurred for transportation to the destination, and even sales at factory gate were subjected to proportionate freight. On these facts, the amount could not be treated as deductible freight for purposes of valuation.

Conclusion: The equated freight was not admissible for exclusion from assessable value under section 4, and the order in appeal was upheld.

---