Transportation charges excluded from assessable value where sale and transfer of property occurred at the factory gate.

Where goods were sold and cleared at the factory gate, and ownership had already passed to the buyer at that stage, transportation charges incurred for later delivery at the buyer's instance could not be added to the assessable value. The decisive factor was that the sale and transfer of property occurred at the factory gate, so any subsequent carriage to the site was outside the value of the goods for excise purposes. Transportation charges were therefore not includible in the assessable value, and the order in favour of the assessee was affirmed.

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Issues: Whether transportation charges could be added to the assessable value when the goods were sold and removed at the factory gate and ownership had already passed to the buyer at that stage.

Analysis: The admitted facts showed that the goods were cleared at the factory gate and the sale took place at that point. On that finding, property in the goods had already passed to the buyer at the time of transfer at the factory gate. Any subsequent transportation undertaken by the assessee at the buyer's instance for delivery at the site could not justify loading the price with transportation charges.

Conclusion: Transportation charges were not includible in the assessable value. The appeal failed and the order in favour of the assessee was affirmed.

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