Excise On frieght insurance and packing

[jitendra pal]

Sir,

our Company is supplying hardware items to some state government electricity boards

where we have two seprate orders one is for ex works price + excise + cst or vat

and other order is for freight and insurance which is fixed and on average basis

please suggest if excise is applicable on fright and insurance amount also or not

AI Summary

Debate on Excise Duty: Should Freight and Insurance Charges Be Included in Assessable Value per Central Excise Act, 2002? A company supplying hardware to state government electricity boards seeks clarification on whether excise duty applies to freight and insurance charges. One respondent argues these charges should be included in the assessable value, allowing cenvat credit for excise duty. Another counters that freight and insurance are not part of the assessable value under the Central Excise Act, 2002, and cenvat credit is not available for service tax paid on these charges. Additional input suggests that packing charges are part of the assessable value, and excise duty depends on the delivery point and contractual terms, requiring documentary evidence for actual freight and insurance costs.