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Circular No. 923/13/2010 - CX
F No. 6/3/2010 - CX.1
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
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 1
st
July 2002 as
amended by the Circular No 827/4/2006 dated 12
th
April 2006 in terms of which the cost of return fare of vehicles was to be
included in the value.
2 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".
3 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 12
th
August 2009
4 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.
5 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 1
st
July 2002 as amended at point No 2(b) is withdrawn and it is clarified that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.
6 Trade and Industry may be informed.
7 Receipt of this circular may be acknowledged
8 Hindi version would follow.
Yours faithfully,
(MADAN MOHAN)
Under Secretary (CX. 1 & 4)
circulars no 923 13 2010 | iKargos