Post-manufacturing packing and forwarding charges are excluded from excise assessable value under Section 4.

Packing, distribution and forwarding charges collected after removal of goods were treated as post-manufacturing expenses and not part of the basic trade price. The Court stated that such charges, including packing costs and packing material charges, are not includible in assessable value for excise duty under Section 4 of the Central Excises and Salt Act, 1944. Where the disputed charge arose only if the wholesaler required additional packing or delivery after the goods reached the duty-paid warehouse, its inclusion in the assessable value was impermissible, and the resulting duty demand could not stand.

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Issues: Whether packing, distribution and forwarding charges collected after removal of the goods could be included in the assessable value under Section 4 of the Central Excises and Salt Act, 1944 for levy of excise duty.

Analysis: The Court held that the disputed 5% charge was recoverable only when the wholesaler required additional packing or delivery after the goods had reached the duty-paid warehouse. On the material before it, the charge was not part of the basic trade price of the manufactured goods but a post-manufacturing expense. Such expenses, including packing costs and packing material charges, were not includible in the value of the goods for excise purposes.

Conclusion: The inclusion of the 5% packing and distribution charge in the assessable value was impermissible and the duty demand on that basis was unsustainable, in favour of the assessee.

Ratio Decidendi: Post-manufacturing expenses incurred after the goods leave the manufacturing stage cannot be added to the assessable value for excise duty under Section 4 of the Central Excises and Salt Act, 1944.

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