Assesable Value ( Outward Freight )

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2009 One company is the manufacturer of alluminium foils, He includes outward freight (freight charges paid to transporter for delivery of goods from factory gate to costomer place). He includes outward freight in the invoices and hence the assessable value for the same is also including of outward freight charges. He shows seperately transportation charges on invoices. Please clarify whether freight should be included in assessable value ?. Further my client is eligible for cenvat credit on transportation charges irrespective of consignment/Export/domestic/branch transfers.

ANIL JANGID

ANIL JANGID (Expert)
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17 November 2009 (1)Factory is the place of removal and where customersâ€™ place cannot be considered as the place of removal. Freight incurred for transport of goods from the factory to the customersâ€™ place.
(2)Cenvat credit of Service Tax paid on such freight is entitled for cenvat credit, as held by the LB, since it is an activity relating to business.
(3) The freight need not be included in the Assessable Value of goods, as per Rule 5 of the Central Excise Valuation Rules, 2000.

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