Assessable value for post-exemption clearances must deduct the actual duty payable on those clearances.

For clearances beyond the exemption turnover, assessable value had to be computed by deducting the excise duty actually payable on those clearances from the total price received. The pricing arrangement contemplated concessional duty only up to the specified turnover and full duty thereafter, so the relevant deduction was the higher duty rate applicable to the post-limit clearances, not the earlier concessional effective rate. On that basis, the department's view was not accepted.

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Issues: Whether, while determining the assessable value for clearances beyond the exemption limit, the duty actually payable at the higher rate had to be deducted from the total price received.

Analysis: The goods were supplied under a price arrangement that contemplated payment of excise duty within the exemption scheme up to the specified turnover, after which full duty became payable. The question turned on the correct method of arriving at assessable value, namely whether deduction had to be made at the rate of duty actually payable on the relevant clearances rather than at the concessional effective rate applicable to the earlier clearances.

Conclusion: The duty actually payable for the clearances beyond the turnover limit had to be deducted in arriving at the assessable value, and the department's appeal was not accepted.

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