Excise valuation of free-supplied moulds and dies cannot trigger a second duty demand once full assessable value is taxed.

Where duty has already been discharged on the full assessable value, including the amortized cost of free-supplied moulds and dies, a separate excise demand cannot be sustained merely because that element was not recovered from the buyer. The record showed that the respondent included the amortized mould and die cost in the assessable value, paid duty on that basis, and complied with the Board circular governing such valuation. The distinction between assessable value and recovery from the buyer did not justify an additional demand, so no further duty survived and the Revenue's challenge failed.

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Issues: Whether duty was payable again on the amortized cost of moulds and dies supplied free of cost by the principal manufacturer when the respondent had already included that amount in the assessable value and discharged duty thereon.

Analysis: The invoice showed that the respondent computed duty on the cost of manufacture together with the amortized cost of moulds and dies and paid excise duty on that assessable value. The fact that the amortized amount was later not recovered from the buyer did not mean that duty had not been paid on it. The Revenue proceeded on a understanding of the distinction between assessable value and amount recovered from the buyer. On the record, the respondent had complied with the requirements reflected in the Board circular governing valuation where moulds and dies are supplied free of cost.

Conclusion: No further duty demand survived on the amortized cost of moulds and dies, and the Revenue's appeal failed.

Final Conclusion: The orders of the Commissioner (Appeals) were sustained and the Revenue's challenge was rejected.

Ratio Decidendi: Once duty has been discharged on the full assessable value, including amortized cost of free-supplied moulds and dies, a separate demand cannot be sustained merely because that element was not recovered from the buyer.

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