Liquidated damages for non-lifting of molasses are excluded from assessable value under the cited valuation principle.

Liquidated damages received for a buyer's failure to lift allocated molasses are treated, on the cited Tribunal view, as amounts arising from breach of the supply arrangement and not as part of the price of the goods cleared; they are therefore excluded from assessable value. The note relies on earlier Tribunal decisions for the proposition that such breach-related compensation cannot be added to excise valuation.

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Issues: Whether liquidated damages received for non-lifting of molasses were includible in the assessable value of the goods.

Analysis: The dispute concerned whether the amount received on account of the buyer's failure to lift the allocated quantity of molasses could form part of the assessable value. The issue was treated as governed by earlier Tribunal decisions holding that such damages, received for breach of the supply arrangement and not as part of the price of the goods cleared, are not to be added to valuation.

Conclusion: Liquidated damages received by the assessee could not be added to the assessable value of the molasses. The appeal was allowed and the impugned order was set aside.

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