Bulk clearance valuation for lubricating oils remained unchanged despite later repacking; no differential duty arose on destination sales.

Blended and compounded lubricating oils cleared in bulk from the factory were assessable on the basis applicable to bulk clearances, because duty had already been paid on approved price lists at the factory gate. Repacking at depots after removal from excise control did not constitute manufacture and could not alter the assessable value fixed at clearance. The fact that some sales were also made in bulk at the factory gate further showed that the goods were not confined to repacked destination sales. No further differential duty was payable merely because the goods were later repacked in smaller containers.

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Issues: Whether blended and compounded lubricating oils cleared in bulk from the factory gate were liable to be assessed on the value applicable to repacked smaller containers at the destination, and whether differential duty was payable on the repacked clearances.

Analysis: The goods were cleared from the factory after payment of duty on the basis of the approved price lists applicable to bulk clearances. Repacking at the depots after removal from excise control did not amount to manufacture, and the subsequent use of the goods could not alter the assessable value already attached to the bulk clearance. The fact that some sales were also made in bulk at the factory gate reinforced that the goods were not confined to repacked sales at the destination.

Conclusion: The goods cleared in bulk were assessable on the basis applicable to bulk clearances, and no further differential duty was payable merely because they were later repacked in smaller containers after clearance.

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