Packing cost in assessable value: non-returnable metal containers for vegetable oil were includible, defeating refund claims.

Cost of metal containers used to pack vegetable oil was treated as part of the assessable value because the goods were cleared from the factory gate only in packed condition, with no evidence of loose sales. In the absence of any agreement, understanding, or established trade practice showing the containers to be returnable, the packing was regarded as necessary for delivery in wholesale trade. On that basis, the container cost was includible in assessable value, and refund claims for excise duty paid on that component were not maintainable.

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Issues: Whether the cost of metal containers used for packing vegetable oil was includible in the assessable value, thereby disentitling the appellant to refund of excise duty paid on that component.

Analysis: The entire quantity of vegetable oil was cleared from the factory gate only in packed condition, with no evidence of any loose sales. There was also no evidence that the containers were returnable under any agreement, understanding, or established trade practice. In these circumstances, the packing was treated as necessary for delivery in wholesale trade, and the cost of the containers formed part of the assessable value.

Conclusion: The cost of metal containers was rightly included in the assessable value, and the refund claims were not maintainable.

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