Outward Freight

[vishal gupta]

whether outward freight is to be included in assessable value and duty is to be paid. if so, then whether the assessee can claim refund of the same under area based notification No. 56/2002 dated 14.11.2002. Pls explain with newly updates.

[KASTURI SETHI]

Sh.Vishal Gupta Ji,

Whether outward freight is to be included in the assessable value or not depends upon the place of removal. If the place of removal is factory gate, then outward freight will not be included in the assessable value. No Central Excise duty is required to be paid on the amount of outward freight. In other words, deduction from transaction value is allowed. If the place of removal is depot, then the element of outward freight is to form the part of assessable value and duty has to be paid on the amount of outward freight. Regarding the claim of refund of duty paid on the amount of outward freight, the procedure is the same. Both Notifications No.56/2002-CE and 57/2002-CE stand amended vide Notification No.3/16-CE. You can take the decision according to your factual position as I am not aware of the place of removal.

 

[Suryanarayana Sathineni]

The views expressed by shri. Kasturi sethi Ji needs no intervention

Regards

Suryanarayana

[KASTURI SETHI]

Sh.Surya Narayana Ji,

Thanks a lot, Sir.

[vishal gupta]

thanx a lot sir for ur valuable suggestions.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's views / opinion. Thanks, it enriched my knowledge.

AI Summary

Outward Freight Inclusion in Excise Duty Depends on Removal Point; Refunds Under Notification No. 56/2002 Clarified A query was raised regarding whether outward freight should be included in the assessable value for Central Excise duty and if a refund can be claimed under Notification No. 56/2002. The response clarified that inclusion depends on the place of removal. If the removal point is the factory gate, outward freight is not included, and no duty is required. If it is a depot, it must be included, and duty paid. The procedure for claiming a refund remains unchanged, with amendments noted in Notification No. 3/16-CE. Other participants agreed with the explanation provided.