FREIGHT, INSURANCE IN EXCISE CALCULATION IGNORED: SC

The Supreme Court has held that freight and insurance charges are not to be taken into account in determining the value of goods for imposing excise duty. In the case, while the value of goods was to be fixed at the factory gate, it was decided between the parties that average freight and insurance were to be charged and not on actuals. According to the court, there were two separate contracts - one for the sale of electric meters, governed by the Sales of Goods Act, and the other governing the
transportation of goods.