Excess freight treated as transportation profit, not assessable value, where excise applies only to manufacture.

Freight collected from buyers in excess of the agreed contractual freight was treated as transportation profit and not as part of the assessable value for central excise purposes. The governing principle applied was that excise duty is levied on manufacture, not on post-manufacture profit from freight collection. The fact that the matter did not strictly involve equalized freight did not alter the result. Excess freight was therefore excluded from assessable value, and the departmental challenge failed.

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Issues: Whether freight collected from buyers in excess of the agreed freight was includible in the assessable value for central excise purposes.

Analysis: The assessments were finalized after provisional assessment, and the disputed amount represented freight collected over and above the agreed contractual freight. Such excess collection was treated as the assessee's profit and not as part of the value of the manufactured goods. The principle applied was that excise duty is levied on manufacture, not on profit earned from transportation. The fact that the case did not strictly involve equalized freight did not affect the application of the governing principle.

Conclusion: The excess freight was not includible in the assessable value and the departmental challenge failed.

Ratio Decidendi: Freight collected in excess of the agreed amount, being profit from transportation and not attributable to manufacture, is not includible in the assessable value for excise duty.

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