Factory-gate excise valuation and no double duty on repacking of duty-paid goods under the same tariff description.

Excise duty on fully manufactured, marketable lubricating greases was chargeable at the stage of removal from the manufacturer's premises, because manufacture was complete at factory gate and later distribution did not shift the point of levy. The assessable value was the Government-fixed sale price applicable to the goods as cleared from the factory, not any subsequent trading or post-handling price. Repacking duty-paid goods into smaller containers did not amount to a fresh manufacture on these facts, as no new and distinct article emerged, so no second levy of duty was attracted. The demand for differential duty therefore failed.

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Issues: (i) At what stage was excise duty leviable on the compounded lubricating greases cleared from the manufacturer's premises; (ii) on what value was duty to be assessed; and (iii) whether repacking of duty-paid goods into smaller containers attracted a second levy of duty.

Issue (i): At what stage was excise duty leviable on the compounded lubricating greases cleared from the manufacturer's premises.

Analysis: The goods were fully manufactured, marketable excisable goods when removed from the factory of the actual manufacturer. The fact that the appellant arranged later distribution or repacking did not alter the point at which manufacture was completed. The excise authorities' own treatment of the manufacturing premises as the place of removal supported levy at the factory gate.

Conclusion: Duty was leviable at the time of removal from the premises of the manufacturer.

Issue (ii): On what value was duty to be assessed.

Analysis: The relevant assessable value was the price fixed for sale of the goods in the packing in which they were cleared from the factory. Where the Government had controlled and fixed the sale price, that price represented the proper basis for assessment at the stage of clearance. Subsequent trading prices or prices after further handling could not be adopted for the initial levy.

Conclusion: Duty was assessable on the Government-fixed price applicable to the goods as cleared from the factory.

Issue (iii): Whether repacking of duty-paid goods into smaller containers attracted a second levy of duty.

Analysis: Repacking after duty-paid clearance did not amount to manufacture in the facts of the case, because no new and distinct article emerged and the goods had already suffered duty as finished excisable goods. A subsequent process of merely changing the packing, after the goods had gone out of excise control, could not justify repetitive duty on the same commercial description and tariff item.

Conclusion: No further duty was leviable on repacking.

Final Conclusion: The appeals succeeded, and the demand for differential duty failed because duty was payable only once, at the stage of clearance from the manufacturer's premises, on the factory-gate value fixed for those goods.

Ratio Decidendi: Excise duty on fully manufactured, marketable goods is chargeable at the point of their removal from the factory on the assessable value applicable to that clearance, and mere repacking after duty-paid clearance does not constitute manufacture or justify a second levy.

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