In case of sales invoice if freight income is shown before excise duty charge then, whether excise duty should be charged on freight income or not as per assessable value rule?
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Excise duty
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As per Rule 5 Central excise valuation (DPEG) rules 2000, If Transport (Freight) from factory to cutomer place, then it is not include in assessable value i.e. excise duty not leviable on such Frieght.
But Profit on transport (freight) includible, if in case transportation charged more in invoice than actual incurred.
Sir,
When Transport not included in Invoice and material send customer's factory gate ( As per Place of Removal buyer premises ) then such amount of freight is to be admissable for Refund claim or not. We have faced a Show Cause Notice due to allowed the Refund but Commisioner disallowed.
By virtue of Section 4 of Central Excise Act, 1944, transport charges is exluded from the meaning of transaction value. So, transport charges not includable in the assessable value for the removal of goods from the place of seller to buyer directly. If the sale is on MRP base,then transport charges would be considered for transaction value as per Section 4A of the Act.
Regards,
JMS
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