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2016 (8) TMI 483 - AT - Central ExciseDemand - differential duty on freight - freight amount not shown separately in the invoice but indicated in the commercial invoices and collected the same from customers - not included in the assessable value - Held that:- merely because in excise invoice, the amount of freight not shown, the excise duty cannot be charged on the freight amount. As per Rule 5 of Central Excise Valuation Rules, 2000 the purpose for showing freight amount is to ascertain the amount of freight. Here though the appellant has not shown freight amount in the excise invoice but it is admittedly shown in the commercial invoice. On the basis of commercial invoice the freight amount can be identified. It is not the case of the Revenue that the amount of freight shown in the commercial invoice is not correct or it is not on account of freight therefore only for not showing the freight in the excise invoice, excise duty cannot be charged thereon. The adjudicating authority, in the adjudication order has accepted that the sale is at factory gate therefore place of removal is the factory gate and as per Rule 5 of Central Excise Valuation Rules, 2000 freight amount is not chargeable to excise duty. Moreover during the period in question i.e. 1.7.2000 to 31.3.2003, the definition of place of removal was restricted to the factory gate or the depot. The premises of the buyer could not have been the place of removal. The costs incurred beyond the place of removal could not be included in the assessable value. Thus cost of transportation beyond the factory gate or the depot could not possibly form part of assessable value. Freight was incurred beyond the factory gate and therefore could not be part of assessable value. - Decided in favour of appellant
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