Home Forum Central Excise Month 3 2020 2020 (3) This
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Service Tax or Central Excise Duty on Freight Charges - Central ExciseExtract A manufacturing unit raises central excise invoice with basic price and central excise on the basic price. Freight is also included in the invoice but the same is not included for calculation of central excise duty. The unit has paid service tax on such freight charges levied. Now, the department says since the place of removal is buyers place, freight charges are to be included in assessable value for central excise purpose. What is the position of law. Is payment of service tax as done by the unit is correct or the unit should have paid central excise on freight charges also, since the place of removal is buyers place or central excise duty and service tax both are applicable in this case.
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