Direct supplies by vendor to customer not to be included in assessable value of the assessee

Last updated: 19 July 2023
Quick Summary
The Supreme Court has ruled that the value of goods directly delivered to a customer's site, which never entered the assessee's factory, should not be included in the assessable value for excise duty. The court dismissed the Revenue's appeal, agreeing with the lower tribunal that since the assessee did not manufacture these 'bought-out' items and they did not pass through their premises, no excise duty was leviable on them by the assessee.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in Commissioner of Central Excise Pune II v. SS Engineers [Civil Appeal No. 5700 of 2019 dated July 07, 2023] dismissed the appeal of the Revenue and held that, value of items which were directly delivered to customer's place and which never entered in the factory of the assessee should not be added to assessable value of goods supplied by the assessee.

Citation :
Civil Appeal No. 5700 of 2019 dated July 07, 2023

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Bimal Jain
Published in GST
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