Assessable value includes duty collected on exempt clearances; refund was reduced after recomputing excise duty.

Excise duty collected from buyers on clearances covered by an exemption notification, though not payable to the department, was treated as part of the assessee's wholesale price and profit and therefore includible in the assessable value. On that basis, duty was required to be recomputed and the refund claim reduced accordingly. The adjustment made by the Assistant Collector was found lawful, and the reduction of refund on recomputation of assessable value and duty was upheld against the assessee.

---

---

Issues: Whether excise duty collected from buyers in respect of clearances covered by an exemption notification, though not payable to the department, was liable to be included in the assessable value, and whether the refund amount was therefore liable to be reduced on recomputation of duty.

Analysis: The appellant had availed the benefit of exemption under Notification No. 80/80 but had nevertheless collected excise duty from buyers on clearances within the exemption limit. Since the amount so collected remained with the appellant and formed part of its profit and wholesale price, it had to be reflected in the assessable value. On that basis, the duty payable was required to be recalculated, and the refund claimed had to be adjusted accordingly. The procedure adopted by the Assistant Collector was held to be lawful.

Conclusion: The reduction of the refund on recomputation of assessable value and duty was upheld against the assessee.

---