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2019 (5) TMI 1018 - AT - Central ExciseValuation - inclusion of transportation cost in assessable value - place of removal/ delivery of the finished goods was the premises of their customers - recovery of cost of transportation from the buyers and had taken insurance under ‘open marine policy’ to cover the loss in transit and safe delivery of goods up to the customer’s place - HELD THAT:- There is no dispute as regards the facts of the present case according to which the appellant have charged transportation charges in the invoices showing separately from their customers. The goods were cleared for sale from the factory premises of the appellant. The insurance of the goods was covered by the appellant up to the place of delivery of the goods. As per the impugned order, the entire emphasis was given that the place of removal is the place of delivery, which is the premises of the buyer of the goods therefore, all the expenses including the insurance, freight etc are includable in the transaction value. When the facts were clear that goods cleared from the factory for sale, even though on FOR basis, the place of buyer cannot be the place of removal in such case the factory from where the goods were cleared for sale is the place of removal. Accordingly, the freight charges is not includable in the assessable value in terms of Rule 5 of Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000. The transportation charges is not includable in the assessable value - appeal allowed - decided in favor of appellant.
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