Post-manufacturing expenses deductible in excise valuation, with consequential refund granted after wrongful duty collection.

Post-manufacturing expenses were held deductible while determining assessable value for excise duty under Section 4, because the issue was already covered by binding law and the assessing authority was required to apply that principle. The contrary inclusion of such expenses in the duty value was unsustainable. As duty had been collected on an inflated assessable value, the petitioners were entitled to recalculation of the deduction and consequential refund of excise duty.

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Issues: Whether post-manufacturing expenses were deductible while determining the assessable value for excise duty under Section 4, and whether the refusal to grant refund on that basis was valid.

Analysis: The deduction claimed towards post-manufacturing expenses had already been covered by the law laid down by the Court. The authority was bound to apply that law while assessing excise duty, and its contrary view was not sustainable. Since the duty had been collected on a value that wrongly included such expenses, the petitioners were entitled to recalculation of deductions and consequential refund.

Conclusion: The claim for deduction of post-manufacturing expenses was allowed, and the consequential refund of excise duty was directed in favour of the petitioners.

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