Freight on freight-to-pay clearances through consignment agents was excluded from excise assessable value.

Freight recovered from buyers at a consignment agent's depot was not includible in the assessable value where goods were cleared on a freight-to-pay basis and the freight was borne by the buyers, not the manufacturer. Applying Section 4 of the Central Excise Act, 1944 and the valuation rules for sales through depots or consignment agents, the Tribunal followed its earlier decisions in the assessee's own case and held that the freight element could not be added. The Tribunal also relied on judicial discipline and consistency, noting the absence of any stay or contrary higher-court ruling. The demand, penalty, and consequential levy were therefore unsustainable.

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Issues: Whether freight realized from buyers at the consignment agent's depot was includible in the assessable value for excise duty where the goods were cleared on freight-to-pay basis through consignment agents.

Analysis: The dispute turned on valuation under Section 4 of the Central Excise Act, 1944 and the relevant valuation rules governing sales through depots or consignment agents. The record showed that the freight was borne by the buyers and not by the manufacturer, and the same issue involving the very same assessee for earlier periods had already been decided in favour of the assessee. The Tribunal followed those earlier decisions and held that, on the facts presented, the freight element could not be added to the assessable value. It also applied the principle of judicial discipline and consistency, declining to take a different view in the absence of any stay or contrary higher-court ruling on the assessee's own cases.

Conclusion: The freight amount was not includible in the assessable value, and the demand, penalty, and consequential levy were unsustainable.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief as permissible in law.

Ratio Decidendi: Where goods are cleared through consignment agents on freight-to-pay basis and the freight is not shown to have accrued to or benefitted the manufacturer, such freight is not includible in the assessable value for excise duty.

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