Assessable value for excise valuation excludes factory-to-depot freight on a prima facie view under amended removal rules.

The amendment to Section 4 of the Central Excise Act, 1944 did not, on a prima facie view, alter the treatment of freight from the factory gate to the depot for assessable value purposes. The Tribunal noted that if the depot is also a place of removal, valuation would be based on the prevailing price at the factory gate or at the depot, as applicable, without adding freight for transport from the factory to the depot. On that basis, it granted interim relief by waiving pre-deposit of duty and staying recovery, with the appeal fixed for out-of-turn hearing.

---

---

Issues: Whether, after the amendment to Section 4 of the Central Excise Act, 1944, freight incurred for transporting goods from the factory gate to the depot forms part of the assessable value and whether waiver of pre-deposit was warranted.

Analysis: The Tribunal recorded a prima facie view that the amendment treating a depot as a place of removal did not alter the position on inclusion of freight. It considered that if the depot is also a place of removal, the prevailing price at the factory gate or at the depot, as the case may be, would apply without adding freight from the factory to the depot. On that prima facie assessment, the Tribunal granted interim relief.

Outcome: Pre-deposit of duty was waived and recovery was stayed, and the appeal was posted for out-of-turn hearing.

---