urgent query??

return fare  as rule 5 of cevr 2000 when deductible & when not ded. why? please explain it

Replies (9)

when goods are sold at factory gate, the fare beyond that is not to be taken in assessable value, when sold through depot of self, then the fare from place of production to the place of clearence ( depot) should be taken in assessable value, but return fare is not related to any activity which is related to "manufacture" hence its not to be taken in calculation while calculating assessable value, hence disallowed. 

Return freight is not includible in assessable value for ED purpose.

 sir is there any circumstances to include the return fare 

share the detailed query to discuss the probabilities 

Return fair is not to be included in the assessable value. Please refer to

DCW Ltd. v. CCE [2007 (217) ELT 0541 (Trb - Chennai)]

Haldia Petrochemicals Limited v. CCE, Haldia [2009 (233) ELT 0344 (Tri. - Kolkata)]

CCE, Vadodara-II v. Gujarat Fluorochemicals Ltd. [2009 (248) ELT 0885 (Tri. - Ahmedabad.)]

Originally posted by : U S Sharma

share the detailed query to discuss the probabilities 

Sir if return fare charged separately on the  invoice 

The return fair is not includible in value irrespective of how you are indicating it in the documents. For example you may just put a remark that the 'Transport Charges include return fair'.

Originally posted by : sudhir goyal




Originally posted by : U S Sharma






share the detailed query to discuss the probabilities 






Sir if return fare charged separately on the  invoice 

return fare is not related to sales, as the sale ends on the point of factory gate, and if any charge is added after the excise invoice then its not part of assessable value, no issue with commercial invoice, but duty can not be deducted on such charges, neither the assessee can take input credit of service tax paid on GTA on such fares beyond factory gate. 

There is only one possibility when return fare would be admissible, in case of "rejected goods and onward sending the replacement goods" from dealers own depot .then the supplimentary invoice may take note of return goods in previous incident, but the case is applicable only if the price or rate of duty changes, otherwise there is no real impact of valuation with return fare. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details