Place of removal under central excise cannot shift to buyer's premises merely because the manufacturer arranges freight and insurance.

For central excise valuation, freight and transit insurance incurred after clearance from the factory were not includible in assessable value where the statutory place of removal remained the factory or another place fixed by the Act. The Tribunal held that the buyer's premises cannot be treated as the place of removal merely because the manufacturer arranged transport and insurance, since such arrangements do not by themselves show that ownership continued with the manufacturer until delivery. It also rejected reliance on a contractual deemed date of delivery, as contractual terms cannot alter the statutory definition of place of removal. Accordingly, post-clearance freight and insurance were excluded from valuation.

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Issues: Whether insurance and freight incurred for transport of excisable goods from the factory to the consignee's premises are includible in the assessable value, and whether the buyer's premises can be treated as the place of removal merely because the manufacturer arranged freight and transit insurance.

Analysis: The Tribunal held that the amended definition of place of removal under Section 4(4)(b) of the Central Excise Act, 1944 refers to the place from which the goods are removed after clearance from the factory, and applies only where the place of removal and place of sale are the same. It relied on the principle that arranging transport and transit insurance by the manufacturer does not by itself show that ownership in the goods continued with the manufacturer until delivery. The Tribunal also rejected the contention based on the contractual deeming date of delivery, as that had no bearing on the statutory place of removal.

Conclusion: Freight and insurance charges up to the buyer's premises were not includible in the assessable value, and the impugned orders could not be sustained.

Ratio Decidendi: For valuation under the central excise law, the place of removal is determined by the statutory definition and cannot be shifted to the buyer's premises merely because the manufacturer arranges freight and transit insurance.

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