Assessable value excludes post-clearance laying charges and bought-out rubber rings where PSC pipes become immovable pipeline work.

Post-clearance laying and jointing charges for PSC pipes were treated as post-manufacturing expenses and excluded from assessable value because they were incurred after removal from the factory. The value of bought-out rubber rings was also excluded, as they were supplied after clearance and not fitted in the factory before removal. Since the resulting water pipeline was embedded in earth and amounted to immovable property rather than a new excisable commodity, the valuation demand failed; the related interest and penalty could not survive once the underlying duty demand was unsustainable.

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Issues: Whether the cost of laying and jointing charges incurred at site, together with the cost of rubber rings supplied as bought out items, was includible in the assessable value of the PSC pipes for central excise purposes.

Analysis: The charges related to laying and jointing were incurred after clearance of the pipes from the factory and were therefore post-manufacturing expenses. The bought out rubber rings were also supplied after clearance and were not fitted in the factory before removal of the goods. The result of laying and jointing was a water pipeline embedded to earth, which was an immovable property and not a new excisable commodity. The Board's clarification under section 37B, together with the cited precedents on valuation and on exclusion of post-clearance and bought out item costs, supported the view that such amounts did not form part of the assessable value. The penalty followed the same valuation issue and could not survive once the demand itself was unsustainable.

Conclusion: The laying and jointing charges and the value of rubber rings were not includible in the assessable value, and the demand, interest, and penalty could not be sustained.

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