Excise duty on freight charge shown in invoice

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2014 Sir
We are a Manufacturer of Electrical Insulators and we are Supplying Electricity Board through Tender System.
we we supply the material to Board we Billed with Basic Rate + Excise duty + Freight Charges + Vat = Total Amount

in Above Case we should pay excise duty on Freight charges or not. Our Delivery Terms is FOR to All Stores of Board.

if any Judgement help me.

Thanks & Regards

Jayendra Patel

Prime Insulators P. Ltd.

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)

25 January 2014 u/s 4 of the Central Excise Act,1944 it is specifically mentioned to exclude fright amount while determining assessable value

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Arun Kumar Singh

Arun Kumar Singh (Expert)

26 January 2014 You have not charge the freight in assessable value. You have to charge the separete freight charges. You are liable to pay service tax on freight charge from the buyer but you can not avial the cenvat credit. If freight charges will included in the assessable value then you can take the cenvat credit.

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