Excise valuation excludes delayed-delivery penalty from sale price where the contractual price was already adopted

Delayed-delivery penalty could not be deducted from the sale price for excise valuation because the contractual price had already been adopted as the assessable value and duty had been paid on that basis. The later reduction in the amount received was attributable to the buyer's penalty claim, which was treated as separate from the price of the goods, and no excise provision permitted such a deduction. The refund claim was therefore rejected.

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Issues: Whether penalty imposed for delayed delivery could be deducted from the sale price while determining the assessable value for excise duty.

Analysis: The contractual price had already been adopted for the original assessment and duty payment. The subsequent reduction in the amount received arose only because the buyer imposed a penalty for delayed delivery. The penalty was treated as distinct from the price of the goods, and no provision in excise law was found permitting deduction of such penalty from the sale price for valuation purposes.

Conclusion: Deduction of the delayed-delivery penalty from the sale price was not permissible, and the refund claim was rightly rejected.

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