Place of Removable

[SURYAKANT MITHBAVKAR]

If we have charge freight charges in our invoice which is recover from customer. We have not charge excise duty on the same.

What is impact of new definition of Place of removal under budget 2015.

[Rajagopalan Ranganathan]

Sir,

CESTAT has held in CCE v. Mainhood Enterprises [2014 (303) ELT 279] = 2014 (10) TMI 301 - CESTAT MUMBAI that if freight is charged separately in invoice, it is not includible in assessable value (transaction value).

A perusal of Finance Bill 2015 does not indicate any amendment has been carried out to definition of place of removal.

[Guest]

Sir,

In my opinion, it depends upon the terms of the sale / purchase order. In case the sale is on FOR Destination basis, the freight is to be included in the transaction value. if the freight is charged separately in such cases, then excise duty shall have to be paid.

AI Summary

2015 Budget Impact: Freight Charges and Excise Duty; CESTAT Ruling Clarifies 'Place of Removal' Definition A query was raised regarding the impact of the 2015 budget on the definition of 'place of removal' in relation to freight charges listed separately on invoices and their exclusion from excise duty. One response cited a CESTAT ruling indicating that separately charged freight is not included in the assessable value. Another response suggested that whether freight should be included in the transaction value depends on the sale terms; if the sale is on a FOR Destination basis and freight is charged separately, excise duty must be paid.