Assessable value excludes charges for durable and returnable containers, even when recovered in instalments from buyers.

Charges recovered for durable and returnable containers are deductible from assessable value when they are actually recovered from buyers; the fact that recovery is made in instalments or on an equated basis does not alter their deductible character. Because the drums were found to be durable and returnable, the amounts recovered in respect of them could not be included in the assessable value, and the disallowance was unsustainable.

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Issues: Whether charges recovered for durable and returnable drums, though collected in instalments on an equated basis, were deductible from the assessable value.

Analysis: The only ground in the notice was the mode of recovery on an equated basis. The drums were found to be durable and returnable, and the recovery of the charges in several instalments did not alter the fact that charges were in fact recovered from buyers. Since the containers were established to be durable and returnable, the amounts recovered in respect of them could not be included in the assessable value.

Conclusion: The charges were deductible from the assessable value and the disallowance was unsustainable.

Ratio Decidendi: Where charges for durable and returnable containers are actually recovered from buyers, the mere fact that such recovery is made in instalments or on an equated basis does not prevent deduction of those charges from the assessable value.

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