Assessable value exclusion for bought-out items and software led to pre-deposit waiver and stay of recovery.

Separately supplied bought-out items and imported software were held prima facie not includible in the assessable value of the manufactured goods. The order noted that computers and other bought-out items delivered directly to the buyer could not be added to the value of goods cleared from the factory, and that software had to be separately assessed under Heading 85.24 under Note 6 of Chapter 85. On that prima facie valuation view, exemption from pre-deposit was granted and recovery of the demand was stayed pending hearing.

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Issues: Whether the appellant was entitled to exemption from pre-deposit and stay of recovery, and whether the value of bought-out items and imported software was prima facie includible in the assessable value of the manufactured goods.

Analysis: The order recorded a prima facie view that the value of computers and other bought-out items supplied directly to the buyer could not be added to the value of the manufactured items removed from the factory. It also noted that, in view of Note 6 of Chapter 85, software was required to be separately assessed under Heading 85.24, making the Commissioner's inclusion of software value prima facie unacceptable. On that basis, the appellant was found entitled to relief against pre-deposit.

Conclusion: Exemption from pre-deposit was granted and recovery of the demand was stayed.

Final Conclusion: The appeal remained pending for hearing, but interim relief was fully granted to the appellant on the basis of the prima facie view on valuation.

Ratio Decidendi: Where the value of separately supplied bought-out items and software is prima facie not includible in the assessable value, waiver of pre-deposit and stay of recovery may be granted.

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