2016 (1) SCC 631 ::AIR 2016 SC (Civil) 324 ::AIR 2016 SC (Supp) 884

Supreme Court Of India

Hon'ble Judge(s): A. K. Sikri, R. F. Nariman , JJ

Central Excise Act (1 of 1944) , S.4— Levy of duty - Valuation of Goods - Period involved is from 28-09-1996 to 31-3-2003 - Place of removal of goods - Cannot be the buyer's premises - Excise duty cannot be recovered on freight charges. Central Excise Valuation (Determination of Price of Excisable Goods) Rules (2000) , R.5— By an Amendment Act w.e.f 14.5.2003, Section 4 was again amended so as to re-include sub-clause (iii) of old Section 4(3) (b) (pre 2000) as Section 4(3) (c) (iii). Therefore, on and after 14.5.2003, the position as it obtained from 28.9.1996 to 1.7.2000 has now been reinstated. Rule 5 as substituted in 2003 also confirms the position that the cost of transportation from the place of removal to the place of delivery is to be excluded, @page-SC885 save and except in a case where the factory is not the place of removal. In law, it is clear that for the period from 28.9.1996 up to 1.7.2000, the place of removal has reference only to places from which goods are to be sold by the manufacturer, and has no reference to the place of delivery which may be either the buyer's premises or such other premises as the buyer may direct the manufacturer to send his goods. As a matter of law therefore the Commissioner's order and Revenue's argument based on that order that freight charges must be included as the ....