2004 (7) TMI 150

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....apter No. 48 of Schedule to the Central Excise Tariff Act, 1985. They cleared their final products both at factory gate and through depots. While clearing the goods the appellants arranged transportation at buyer's request and incurred freight. As per Rule 5 of Valuation Rules, 2000, actual cost of transportation is to be excluded from the transaction value, provided the cost of transportation is charged to the buyer in addition to the price for the goods and shown separately in the invoice for such excisable goods. During the period from 1-7-2000 to 31-10-2000 the appellants collected the freight charges separately by raising debit notes subsequent to clearance and have not shown the same in their clearance invoices. Therefore, a show ....

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....artment that the amount of freight charges included in the value has been remitted back to the appellants, the appellants were entitled for deduction of freight charges from the value inclusive of transportation charges and no duty is required to be recovered from them whether such freight charges were shown separately in the invoices or not. She therefore pleaded that the order of the lower authority may be set aside. She relied on the decision of the Tribunal in case of Shasun Chemicals and Drugs Ltd. v. CCE, Pondicherry - 2003 (158) E.L.T. 520 (Tri. - Chennai), wherein it was held that - "the deductions on actual freight even in case of assessee claiming equated/equalized freight is permissible and they cannot be discriminated against ....

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....rtation charges. Rule 5 of the Central Excise Valuation (Determination of Price of the Excisable Goods) Rules, 2000, allows deduction of the cost of transportation from the price charged by them for assessment of Central Excise Duty. They have issued credit notes for the transportation charges and they have paid the duty only on the assessable value of the goods. The Original Authority when got the claim made by the appellants verified, has found that they had collected the transportation charges in excess than the transportation charges shown in the L.Rs. Subsequently, the appellants paid the duty on excess amount collected by them than the actual reflected in the L.Rs. According to Rule 5, if the goods are sold for delivery at a place oth....