Excise valuation: amount collected at sale remained part of assessable value despite later credit notes and transfer to dealer.

Amounts collected from civilian indentors at the time of clearance of motor vehicles formed part of the sale consideration under excise valuation rules. Invoices showed an amount over and above the declared price, and later credit notes issued to the dealer did not alter the character of that receipt. Because the amount was received at the time and place of sale, it remained part of the assessable value. The statutory scheme under Section 4 permitted only specific deductions, and the disputed amount did not fall within any exclusion. The amount was therefore correctly included in assessable value, and the appeal failed.

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Issues: Whether the amount of Rs. 1,000 collected from civilian indentors at the time of clearance of motor vehicles formed part of the assessable value under excise law.

Analysis: The invoices for vehicles supplied to civilian indentors showed an amount of Rs. 1,000 over and above the declared price, and credit notes were later issued to the dealer for the same amount. On these facts, the amount was received at the time and place of sale as part of the consideration for the sale. Subsequent transfer of that amount to the dealer did not change its character as part of the price. The statutory scheme for valuation under Section 4 allowed only the deductions specifically contemplated therein, and the disputed amount did not qualify for exclusion.

Conclusion: The amount of Rs. 1,000 was correctly included in the assessable value and the appeal failed.

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