Assessable value for excise duty excludes rebate element, while disputed rebate eligibility requires factual verification before final adjudication.

Rebate allowed under the notification was held not to form part of the assessable value for excise duty, so the demand based on its inclusion could not be sustained. The separate question of rebate entitlement for the disputed quantity of vegetable products depended on factual verification of the prescribed oil-content condition, which had not been examined by the lower authorities, so the matter was remanded for fresh adjudication on that limited issue.

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Issues: (i) Whether the rebate element was required to be included in the assessable value for computing excise duty; (ii) whether rebate was admissible in respect of 9.178 MTs of vegetable products and required factual verification.

Issue (i): Whether the rebate element was required to be included in the assessable value for computing excise duty.

Analysis: The settled view already adopted in similar matters was that the rebate element was not to form part of the assessable value. On that basis, the demand founded on inclusion of the rebate amount in the assessable value could not be sustained.

Conclusion: The claim for duty based on inclusion of the rebate element in the assessable value was rejected.

Issue (ii): Whether rebate was admissible in respect of 9.178 MTs of vegetable products and required factual verification.

Analysis: The objection was that the disputed quantity did not satisfy the oil-content requirement of the notification. The contrary stand was supported by a statement attested by the jurisdictional Superintendent indicating the prescribed oil content. The question had not been examined by the lower authorities and required verification on facts.

Conclusion: The orders were set aside and the matter was remanded to the jurisdictional adjudicating authority to decide rebate admissibility for the disputed quantity.

Final Conclusion: The demand based on inclusion of rebate in assessable value failed, but the dispute regarding rebate entitlement for the disputed quantity was sent back for fresh adjudication.

Ratio Decidendi: Rebate allowed under the notification is not to be added to assessable value, and disputed factual eligibility for rebate must be determined on verification before final adjudication.

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