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2017 (10) TMI 1112 - CESTAT NEW DELHIValuation - freight charges - includibility - Department was of the view that the goods have been sold to the customers at the buyers premises and hence the freight charges collected by the appellant are required to be added to the transaction value for payment of Central Excise duty - place of removal - Held that: - it is evident that the goods have been removed from the factory and sent directly to the premises of the buyers. As per the terms of the purchase order, the appellant is required to deliver the goods at the premises of the buyer and has to bear all liability upto the delivery point - in the instant case, the goods have been sold in terms of section 4(1)(a) except that the excisable goods are to be delivered at the buyers premises. Rule 5 makes it clear that the cost of transportation from the factory gate upto the place of delivery is to be excluded computing the assessable value - freight charges not to be included in the assessable value for the purpose of excise duty. Explanation 2 to Rule 5 will not be applicable in the facts of the present case since, the place of removal is factory gate and not the premises of buyer of goods. Appeal allowed - decided in favor of appellant.
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