Proportionate duty on freight and insurance

[Guest]

We export our FG on payment of duty under rebate claim procediue u/r 18 of CER, 2002..We pay duty as per Sec 4 of the CEA,1944. & no abatement on account of freight & insurance is being claimed to arrive at ASV. Excise dept while sanctioning rebate claim wants us to give freight & insurance figures incurred on export consignment by assuming it as post factory expenses. We are of the view that, for export goods, place of removal is port and not factory gate as understood by the dept. Please let me know whether dept's view is legally sustainable? Also pl let me know if any case law/board circular stating that proportionate duty on freight & insurance is not to be deducted while sanctioning claim. Request the learned readers to share their wisdom.

AI Summary

Clarification on Excise Rebate Claims: Freight and Insurance Figures Should Not Affect Export Rebates. Place of Removal is Key. A user inquired about the legality of the Central Excise Department's demand for freight and insurance figures when sanctioning a rebate claim for exported goods, arguing that the place of removal should be the port, not the factory gate. They sought clarification on whether the department's view is legally sustainable and if there are any supporting case laws or circulars. A respondent clarified that for excise purposes, the place of removal is typically the factory gate, but the user's understanding is correct for export procedures. If excise duty is paid inclusive of freight and insurance, the department should not deny the rebate claim.