Inclusion of Freight in Assassable Value

[Sanjeev Chauhan]

Respected All,

A manufacturer is charging freight amount separately in his Invoice but not including it in assassable value.

In my view, since the manufacturer is charging freight in his Invoice and also collecting the same from the buyer than such freight charges should form the part of assassable value and excise duty should be paid on such freight amount also.

Please guide, is the interpretation made above is correct or otherwise.

Regards,

Sanjeev.

 

 

 

[YAGAY and SUN]

Please refer Accurate Meter judgment in this regard.  According to this judgment, excise duty is not payable on freight amount.

AI Summary

Assessable value: separately billed freight excluded from assessable value, so excise duty not payable on freight.
The issue is whether separately invoiced freight must be included in the assessable value for excise duty. The reply cites the Accurate Meter judgment and states that, under that precedent, excise duty is not payable on freight charged separately, indicating such freight is excluded from assessable value.