Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No. 923/13/2010 - CX
New Delhi, 19th May, 2010.
To
Director General (All)
Chief Commissioners of Central Excise including LTU (All)
Commissioners of Central Excise including LTU (All)
Sir/Madam,
Subject: - Clarification regarding inclusion of cost of return fare of vehicles
in assessable value – reg
Attention is invited to clarification given at S. No 2(b) vide the Board’s
Circular No. 634/34/2002-CX dated 1st July 2002 as amended by the
Circular No
827/4/2006 dated 12th April 2006 in terms of which the cost of return fare of
vehicles was to be included in the value.
- The Tribunal has in case of DCW Ltd. v. CCE [2007 (217) ELT 541 (Mad.)] held
that “ where onward freight was not includible in the assessable value of the
excisable goods, there was no question of return freight being included in the
assessable value, whether or not the return freight was mentioned in the
relevant invoices. The principle stated by the Tribunal in the cited decision is
squarely applicable in respect of such return freight also”.
- Further, the tribunal has in case of Haldia Petrochemicals Limited Vs
Commissioner of Central Excise Haldia [2009 (233) E.L.T. 344 (Tri. - Kolkata)}]
held that in case where the transaction value of the goods being cleared is
available at the factory gate value will be determined in accordance with
Section 4(1)(a) of the Central Excise Act,1944 without any reference to Rule 5
of the Central Excise Valuation (Determination of Price of Excisable Goods)
Rules, 2000. The appeal filed by the department against this order of the
tribunal has been dismissed by the Supreme Court vide its order in Civil Appeal
D No 9262 of 2009 dated 12th August 2009
- Tribunal has in case of Commissioner of Central Excise Vadodara-II Vs. Gujarat
Fluorochemicals Ltd. [2009 (248) E.L.T. 885 (Tri. - Ahmedabad.)] followed the
aforesaid order in case of Haldia Petrochemicals.
- The Board has accepted the order of tribunal in case of Haldia Petrochemicals.
Accordingly the clarification issued by the Board vide circular no
634/34/2002-CX dated 1st July 2002 as amended at point No 2(b) is withdrawn and
it is clarified that cost of return fare of vehicles is not required to be added
for determining value. All the pending cases may be decided in accordance with
the aforesaid decision of the Tribunal.
- Trade and Industry may be informed.
- Receipt of this circular may be acknowledged
- Hindi version would follow.
Yours faithfully,
(MADAN MOHAN)
Under Secretary (CX. 1 & 4)
F No. 6/3/2010 – CX.1