Free-supplied packing material is excluded from assessable value when the buyer provides it without cost.

Free-supplied packing material is not includible in the assessable value of manufactured goods where the buyer provides the packing material at no cost. The accepted facts showed that the packing material was supplied free of cost, so there was no basis to add its value to the assessable value of the excisable goods. On that footing, the impugned order was set aside and the assessee's appeal was allowed.

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Issues: Whether the value of packing material supplied free of cost by the buyer is includible in the assessable value of the manufactured goods.

Analysis: The dispute was governed by the settled position that where packing material is supplied free of cost by the buyer, its value is not to be added to the assessable value of the goods. On the facts accepted in the case, the packing material was supplied free of cost and, therefore, no basis existed for including its value in the assessable value of the manufactured goods.

Conclusion: The value of the free-supplied packing material was not includible in the assessable value, and the appeal succeeded.

Final Conclusion: The impugned order was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Free-supplied packing material is not includible in the assessable value of excisable goods.

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