Excise valuation for goods under Rule 196A follows the manufacturer's declared value, not a later resale price.

For goods cleared under Rule 196A, excise assessable value was to be based on the value declared by the manufacturer, not on the higher price later realised by the assessee on resale after removal. The Tribunal applied the settled principle that the declared manufacturer's value governed assessment in such transactions and rejected the subsequent sale price as the valuation basis. The assessee therefore obtained relief on valuation.

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Issues: Whether the assessable value for excise duty on goods obtained under Rule 196A and later disposed of by the assessee was to be determined on the value declared by the manufacturer or on the higher price realised on subsequent sale by the assessee.

Analysis: The Tribunal noted that the same question had already been decided in earlier cases. The governing principle applied was that, for such goods, the declared value furnished by the manufacturer formed the basis for assessment. The later resale price obtained by the assessee after removal from the premises was not the relevant basis for excise valuation.

Conclusion: The assessable value had to be taken on the basis of the value declared by the manufacturer, not the price at which the goods were subsequently sold by the assessee. The appeal succeeded and consequential relief followed.

Ratio Decidendi: Where goods are cleared under the relevant excise arrangement, their assessable value is governed by the declared manufacturer's value and not by a later resale price realised after removal.

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