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of <h1>Tribunal: Freight Charges Excluded from Assessable Value of Goods Sold</h1> The Tribunal held that equalized freight charges should not be included in the assessable value of goods sold from factory premises, following Section ... Valuation (Central Excise) - Freight charges - Depot sales Issues involved: The issue involves the consideration of whether equalized freight charges shown separately in invoices should be added to the assessable value of goods, particularly when goods are sold from depots at different places.Summary:1. The appeal raised the question of whether equalized freight charges should be included in the assessable value of goods sold from factory premises. The Tribunal held that if the sale price at the factory gate is available and certain conditions are met, the assessable value is the transaction value as per Section 4(3)(d) without adding any additional components. Rule 5 of the Valuation Rules does not apply when goods are sold at the factory gate, and freight charges should not be added to the factory gate price for determining assessable value.2. Regarding goods sold from depots, the Tribunal determined that freight and insurance expenses shown separately in invoices should not be added to the assessable value. Rule 7 of the Valuation Rules provides for computing the transaction value of goods sold from depots, without mandating the inclusion of transportation expenses after the sale from the depot to customers' premises.3. The Tribunal found that the conditions under Rule 7 were not met in this case, and therefore, freight charges should not be included in the assessable value of goods sold from depots. The order passed by the Commissioner was set aside, and the appeal was allowed with the appellant entitled to consequential reliefs, including any refund of excess payments.4. In conclusion, the Tribunal held that despite statutory amendments and the introduction of new Valuation Rules, freight charges should not be included in the assessable value of the goods in question. The order impugned was set aside, and the appeal was allowed with all consequential reliefs granted, including any refund due.
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