TaxTMI 
TaxTMI 
2014 (3) TMI 917
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....n them under Rule 25 of the Central Excise (No. 2) Rules, 2001. 3. Appellant is engaged in the manufacture of ACSR/AAA conductors. He has been charging freight including transit insurance on equalized basis of length of cable sold i.e. at per kilometer rate, irrespective of the distance factor. The invoices issued by the Appellant to his customers, mention the freight, but on equalized basis. The appellant while paying excise duty on the goods cleared claimed exclusion of the equalized freight from the assessable value and did not pay duty on the freight amount. 4. The Department was of the view that this has been in violation of Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 read ....
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....ating the finding of the Commissioner (Appeals) in it and emphasizing that since during the period of dispute, the Rule 5 of Central Excise (Valuation) Rules, 2000 provided for exclusion of actual cost of transportation from the place of removal upto the place of delivery and since the invoices do not show the actual freight, but the freight on equalized basis i.e. averaged freight charged at per kilometer rate, its exclusion from the assessable value has been rightly disallowed. 8. We have carefully considered the submissions of the learned A.R. and have gone through the memorandum of appeal. As mentioned in para 3 of the show cause notice, the appellant was showing the freight separately in the invoices on equalized basis charged on....
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.... exclusion of - "the cost of transportation from the place of removal to the place of delivery" for determining the amenable value held that fright charge from the place of removal to the place of delivery is deductible even if charged on equalized basis. Though the new Section in force w.e.f. 1-7-2000, does not have a provision specifically providing for exclusion of the cost of transportation from the place of removal to the place of delivery if the transaction value at the place of removal is not known, the cost of the transportation from the place of removal to the place of delivery has to be excluded as, as per the provisions of Section 4(1)(a), the transaction value has be for delivery of the goods at the time and place of removal. In....