Secondary packing cost is includible in assessable value only when necessary for wholesale sale at the factory gate.

Corrugated carton packing cost for refrigerators is includible in assessable value only if the packing is necessary to place the goods in the condition in which they are generally sold in the wholesale market at the factory gate. The existing record did not clearly establish whether the cartons were merely transport packing or part of the sale packing, and the lower authorities had not made adequate factual findings on the nature of the packing. Because the material facts were incomplete, the question of includibility could not be finally determined and the appellate order was set aside, with the matter remitted for de novo adjudication on proper facts.

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Issues: Whether the cost of corrugated carton packing used for refrigerators was includible in the assessable value, and whether the matter required remand for fresh factual determination.

Analysis: Inclusion of packing cost depended on whether the packing was necessary to put the goods in the condition in which they were generally sold in the wholesale market at the factory gate. The record did not clearly establish the actual nature of the packing, particularly whether there was any inner packing and whether the carton was merely transport packing or packing integral to sale. The lower authority had not recorded sufficient findings on these material facts, and the appellate authority had accepted the assessee's version without adequate factual verification. In these circumstances, the question of inclusion could not be finally answered on the existing record.

Conclusion: The issue of includibility of the carton packing cost was left to be determined afresh on proper facts, and the matter was sent back for de novo adjudication.

Final Conclusion: The appellate order was set aside and the dispute was remitted to the lower authority for fresh decision after examining the nature and role of the packing in the assessable valuation.

Ratio Decidendi: Cost of secondary packing is includible in assessable value only to the extent that such packing is necessary for sale of the goods in the wholesale market at the factory gate, and the factual nature of the packing must be determined before applying that test.

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