Buyer-nominated inspection charges excluded from assessable value, with duty refund available subject to refund law.

Inspection charges for buyer-initiated inspection by a buyer-nominated agency were not part of the assessee's manufacturing or normal inspection cost and therefore were not includible in the assessable value of excisable goods. The assessee was entitled to refund of duty collected on that element, subject to Section 11B(2) of the Central Excise Act, 1944.

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Issues: Whether inspection charges paid for buyer-initiated inspection by an agency chosen by the buyer were includible in the assessable value of excisable goods, and whether refund of duty on that element was admissible.

Analysis: The inspection in question was carried out at the instance of the buyer, through a buyer-nominated agency, and was in addition to the appellant's own normal inspection. Such charges were not part of the appellant's manufacturing or inspection cost and could not form part of the assessable value.

Conclusion: The inspection charges were not includible in the assessable value, and the assessee was entitled to refund of duty on that element, subject to Section 11B(2) of the Central Excise Act, 1944.

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