Assessable value excludes distinct traded items not forming part of the manufactured product; pre-deposit waiver justified.

Traded test kit and IAS column used for checking adulteration in petroleum products were held to be distinct from the manufactured marker used with kerosene, so their value could not be added to the marker's assessable value for central excise duty. The revenue rulings cited concerned bought-out items cleared as parts of the manufactured product, which was not the factual position here. On that basis, the assessee established a strong prima facie case for waiver of pre-deposit, and stay of recovery was justified.

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Issues: Whether the value of the test kit and IAS column, being traded items used for a different purpose from the marker, could be added to the value of the manufactured marker for the purpose of central excise duty, and whether the appellant had made out a case for waiver of pre-deposit and stay.

Analysis: The marker was used for mixing with kerosene, whereas the test kit and IAS column were used for checking adulteration in petroleum products. The goods were distinct and served different functions. The decisions relied upon by the Revenue concerned cases where bought-out items were cleared as parts of the manufactured goods, which was not the factual position here. Since the test kit and IAS column were traded items and not part of the manufactured marker, their value could not be included in the assessable value of the marker for duty purposes. On that basis, the appellant established a strong prima facie case for waiver of pre-deposit.

Conclusion: The value of the test kit and IAS column was not includible in the value of the marker for the purpose of excise duty, and waiver of pre-deposit with stay of recovery was justified.

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