Dharmada collections for charity were excluded from excise assessable value, as they were not part of the normal price.

Dharmada collected from customers for charitable purposes was treated as outside the normal price of the goods and therefore not includible in assessable value for excise duty under Section 4 of the Central Excises and Salt Act, 1944. The Tribunal followed its earlier view, relying on the Supreme Court decision in Bijili Cotton Mills, that such receipts do not form part of the price realised for the goods. On that basis, Dharmada collections were excluded from duty valuation and the issue was decided in favour of the assessee.

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Issues: Whether Dharmada collected from customers for charitable purposes was includible in the assessable value for levy of duty under Section 4 of the Central Excises and Salt Act, 1944.

Analysis: The Tribunal followed its earlier view, supported by the decision of the Supreme Court in Bijili Cotton Mills, that amounts collected as Dharmada for charitable purposes do not form part of the normal price of the goods. On that basis, such receipts were treated as outside the assessable value and not chargeable to duty.

Conclusion: Dharmada receipts were not includible in the assessable value and the issue was decided in favour of the assessee.

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