Assessable value and secondary packing: sale-essential cartons and wooden cases were includible, so the refund claim failed.

Packing costs for cartons and wooden cases used with tread rubber were held includible in assessable value because the goods could not be sold in wholesale trade without that packing. Packing that is necessary to make excisable goods marketable and saleable is part of assessable value, whereas packing used merely for transport or smooth transit may be excluded as secondary packing. On the facts, the cartons and wooden cases were not mere transport packing but formed part of the ordinary sale packing, so the refund claim failed and the writ petition was dismissed.

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Issues: Whether the cost of cardboard cartons and wooden cases used for tread rubber was excludible as secondary packing from the assessable value for excise duty, and whether refund of duty on that footing was payable.

Analysis: On the facts found, the tread rubber roll could not be sold without the cartons or wooden cases, since they held the roll together and formed the packing in which the goods were ordinarily sold in wholesale trade. Packing incurred merely for transport or smooth transit may fall outside assessable value, but packing which is necessary to make the goods marketable and saleable in wholesale trade is includible. The cartons and wooden cases here were not merely protective or transport packing; they were part of the packing required for sale.

Conclusion: The packing cost was correctly included in the assessable value and was not deductible as secondary packing; the refund claim failed.

Final Conclusion: The writ petition was liable to be dismissed because the impugned orders treating the packing as includible for excise valuation were upheld.

Ratio Decidendi: Packing necessary for sale of excisable goods in wholesale trade at the factory gate is part of assessable value, while only packing used merely for facilitating transport or smooth transit is excludible as secondary packing.

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