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Freight and other costs is includable in value of goods where transfer of property takes place at buyer s premises

Freight and other costs is includable in value of goods where transfer of property takes place at buyer s premises - Central Excise - By: - Bimal jain - Dated:- 5-6-2015 - Dear Professional Colleague, Freight and other costs is includable in value of goods where transfer of property takes place at buyer's premises We are sharing with you an important judgment of the Hon ble Supreme Court, in the case of Commissioner, Customs and Central Excise, Aurangabad Vs. Roofit Industries Ltd. [2015 (4) .....

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and testing of PSC pipes of specified sizes. After scrutiny of various records and documents of the Respondent, it was found that no sale took place till the goods reached the test of the projects. Accordingly, the Department alleged that the Respondent was indulging in evasion of Excise duty by not computing the assessable value of finished goods properly to the extent that the Respondent was deducting the amount of freight, insurance and unloading charges from the price of excisable goods thou .....

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ng out the following pertinent aspects: The duty of Excise is chargeable on excisable goods with reference to the value of those goods; The value of the goods is deemed to be the normal price thereof, that is to say, the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade; The said normal price is to be seen at the time of delivery and place of removal; 'Place of removal' is specifically defined and it is to be a place or premises .....

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from the factory gate namely freight, insurance and unloading charges etc., are not to be included in the valuation of the goods for the purposes of Excise duty. The reason is that the sale of goods to the buyer is at the factory gate when the property passes to the buyer and the aforesaid expenditure are thereafter incurred by the buyer. The principle of law, thus, is crystal clear. It is to be seen as to what point of time sale is effected namely whether it is on factory gate or at a later p .....

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