Assessable value in excise excludes transit-related breakage and insurance recoveries not shown to be part of goods' cost.

Amounts collected from customers towards breakage and insurance charges were held not to form part of the excisable assessable value where they represented transit-related reimbursement and not the cost of the goods. The analysis drew a distinction between actual expenses incurred for loss or damage during transit and amounts recovered under the guise of transportation or insurance charges as part of value. On the facts, even any excess recovery over actual expenditure was not includible unless shown to be part of the goods' cost, so the revenue's challenge failed.

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Issues: Whether amounts collected towards breakage and insurance charges from customers were includible in the assessable value for excise purposes.

Analysis: The amount collected was described as insurance charges to cover loss or damage during transit, and there was no finding that it represented the cost of the goods. The distinction drawn was between reimbursement of actual transit-related expenses and amounts collected under the guise of transportation or insurance charges as part of the goods' value. On the facts, even excess recovery over actual expenditure would not be includible unless shown to be part of the cost of the goods.

Conclusion: The amount was not includible in the assessable value, and the revenue's appeal failed.

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