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Issues: Whether freight charged separately in the sale invoices of excisable goods is includible in the assessable value when the goods are cleared from the factory and delivered at the buyer's premises.
Analysis: The dispute turned on the meaning of "place of removal" under Section 4 of the Central Excise Act, 1944. The goods were cleared from the factory, the freight was separately charged in the invoices, and delivery at the buyer's premises did not alter the statutory place of removal. The Tribunal followed the principle that buyer's premises cannot, in law, be treated as the place of removal merely because delivery is undertaken there. Freight incurred beyond the place of removal, therefore, does not form part of the assessable value. The Tribunal also noted that the issue stood covered by binding precedent and earlier co-ordinate bench decisions.
Conclusion: Freight charged separately after clearance from the factory is not includible in the assessable value. The demand of duty on freight was not sustainable.
Ratio Decidendi: Under Section 4, transportation cost beyond the place of removal is excludible from valuation, and the buyer's premises cannot be treated as the place of removal merely because the seller undertakes delivery there.
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