Assessable value of bolts excludes separately purchased nuts and washers when the items remain distinct products.

The assessable value of bolts manufactured and cleared with separately purchased nuts and washers was confined to the value of the bolts alone. Nuts, bolts and washers remained distinct products, and their assembly for packing and verification of suitability did not create a new commercially distinct product. Because the buyer would separate and use the items individually, the value attributable to the purchased nuts and washers could not be included in the assessable value of the excisable bolts.

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Issues: Whether, in the valuation of bolts manufactured and cleared along with nuts and washers purchased from the market, the assessable value of the excisable product included the value of the nuts and washers.

Analysis: The supply was for bolts and nuts assembled together with washers only for convenience of packing and verification of suitability. Nuts, bolts and washers were distinct products, and their combination did not bring into existence a new commercially distinct product. Since the buyer would separate and use them individually, the value attributable to the purchased nuts and washers could not form part of the assessable value of the bolts.

Conclusion: The assessable value was confined to the value of the bolts alone and did not include the value of the nuts or washers.

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