Ask a Query






Client Login

Welcome GST India Solution

923/13/2010-CX, Dated: 19/05/2010

 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 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.
 
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 12th 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clarification issued by the Board vide circular no  634/34/2002-CX dated 1st July 2002  as amended at point No 2(b) is withdrawn and it is clarified that cost of return fare of vehicles is not required to be added for determining value.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.
 
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)
 
 

 

 
 

Latest Articles

<--

WHAT IS GST?

GST i.e.Goods and Service Tax is a unified tax that replaces several indirect taxesleviedby the Central Government and the State Government(s)....

Read more
-->

BASIS OF CHARGE OF GST- SUPPLY

In pre-GST regime, goodswere liable to: (i) Excise Duty- on manufacture of goods; (ii) VAT/CST- on sale of goods; (iii) Entry tax- on ...

Read more

WHO IS LIABLE TO PAY TAX

GST is levied on every taxable person. Taxable person means a person who carries on any business at any place in India. Such . ..

Read more

WHAT IS TAXED UNDER GST

GST is a unified tax which is levied on: (i) goods; (ii) services and (iii) a mix of goods and/or services. Any supply of goods or services . .. ...

Read more

Who We Are

GST India Solution is an effort of firm of professionals who welcome implementation of GST. This is an interactiveplatformthat aspires to disseminate right knowledge to professionals, practitioners and public at large. This platform has beenfloatedbya firm of Chartered Accountants relentlessly working in field of direct and indirect taxes since early 1985.

READ MORE

Why

Goods & Service Tax


Our core competence is statutory compliance, advisory, corporate tax planning and appellate matters of direct and indirect taxesandcorporate training sessions on GST.

The senior partner of the firm has to his credit several professional publications viz., Delhi Sales Tax  Right to Use Goods Act, Delhi VAT, Maharashtra VAT, West Bengal VAT, Haryana VAT published by Taxmann. Madhya Pradesh VAT and Chhattisgarh VAT were published by Suvidha Law House, Bhopal. He has also addressed seminars on indirect taxes organized by professional bodies like ICAI, IMA, NIFM etc. and has also contributed articles on subjects of pro. . . . .

READ MORE

Gst Events