Durable and returnable packing may be excluded from assessable value even if dismantling is needed to remove goods.

Packing cost was excludible from assessable value where the packing was durable and returnable by the buyer. The record showed that the goods were cleared in wooden crates under an arrangement for return of the crates, and the fact that some planks had to be dismantled to remove the glass sheets did not by itself destroy the durable character of the packing. The crates remained capable of further use as packing material, so the cost of the wooden packing was deductible.

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Issues: Whether the cost of wooden packing crates was deductible from the assessable value on the ground that the packing was of a durable nature and returnable by the buyer.

Analysis: Section 4 of the Central Excise & Salt Act, 1944 allowed exclusion of packing cost only where the packing was durable in nature and returnable by the buyer. The evidence showed that the goods were removed in wooden crates under an arrangement for return of the crates, and the mere fact that some planks had to be dismantled to remove the glass sheets did not make the packing non-durable. The packing remained capable of further use as packing material, and the factual record supported the claim that the crates were in the nature of returnable wooden boxes.

Conclusion: The cost of the wooden packing was deductible, and the assessee succeeded on the issue.

Ratio Decidendi: Packing cost is excludible from assessable value where the packing is durable and returnable, and temporary dismantling for removal of goods does not by itself destroy the durable character of the packing.

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