Excise valuation excludes non-statutory packing cost and post-removal transport charges where factory-gate sale is absent.

Packing material falling outside the statutory definition of packing is treated as outside the assessable value under Section 4 of the Central Excises and Salt Act, 1944, so its cost is excluded from excise valuation. Where there was no sale at the factory gate and the normal price at the place of removal could not be ascertained, valuation was to be based on the delivery price at another place, with forwarding, transportation, loading and related handling charges excluded from assessable value. The stated result was exclusion of both disputed additions.

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Issues: (i) whether the cost of packing material falling outside the statutory definition of packing was includible in the assessable value; (ii) whether forwarding and transportation charges, including loading and related handling charges, were includible in the assessable value where there was no sale at the factory gate.

Issue (i): whether the cost of packing material falling outside the statutory definition of packing was includible in the assessable value.

Analysis: The packing in question was held to be outside the scope of packing contemplated by Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944. On that footing, the cost of such packing material was treated as not forming part of the value of the excisable goods for assessment under Section 4 of the same Act.

Conclusion: The packing cost was not includible in the assessable value, in favour of the assessee.

Issue (ii): whether forwarding and transportation charges, including loading and related handling charges, were includible in the assessable value where there was no sale at the factory gate.

Analysis: As no sale at the factory gate was found and the normal price at the place of removal was not ascertainable, the value was required to be determined with reference to the delivery price at a place other than the place of removal. In that situation, the transportation cost, including loading charges from the place of delivery, was held excludible from assessable value under Section 4 of the Central Excises and Salt Act, 1944.

Conclusion: The forwarding and transportation charges were not includible in the assessable value, in favour of the assessee.

Final Conclusion: The appellate relief was granted and the disputed additions to assessable value were directed to be excluded.

Ratio Decidendi: Amounts representing post-manufacturing packing costs outside the statutory definition of packing, and transportation-related charges where valuation is not based on a factory-gate sale, are not includible in assessable value under Section 4 of the Central Excises and Salt Act, 1944.

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