Transportation charges up to buyer's premise, if included in agreed price, count towards assessable value

Last updated: 23 August 2023

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The CESTAT, Kolkata, has ruled that transportation charges included in the agreed price for goods delivered to the buyer's premises should be counted towards the assessable value. This decision overturned a previous refund rejection, stating that when a sale occurs at the buyer's location after inspection and acceptance, all costs up to that point, including freight, form part of the value on which duty is calculated. The tribunal found that the Revenue Department had incorrectly applied valuation rules, as the specific circumstances fell under an exception where charges up to the place of sale are includible.

Court :
CESTAT, Kolkata

Brief :
The CESTAT, Kolkata, in M/s Satya Megha Ispat Pvt. Ltd. v. Commissioner of Central Excise [Excise Appeal No. 71484 of 2013 dated August 04, 2023] set aside the refund rejection order and held that in case where the sale took place at the buyer’s premises after accepting the goods post inspection, the price charged by the assessee till the place of sale including freight, etc.

Citation :
Excise Appeal No. 71484 of 2013 dated August 04, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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