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

Place of removal determines assessable value-freight excluded at factory gate but included at depot, affecting duty liability. Whether outward freight is included in the assessable value depends on the place of removal: excluded at the factory gate (no duty payable) but included where removal is from a depot (duty payable); the same factual test governs refund claims, and amended notifications apply to entitlement.