Charity receipts shown separately in invoices were excluded from excise value where kept solely for charitable purposes.

Amounts collected from customers and separately shown in invoices as charity or dharmada are not includible in the assessable value for central excise when they are earmarked solely for charitable purposes and there is no allegation that they were used otherwise. The document applies the principle that such receipts do not form part of the normal price for valuation purposes. On that basis, the demand was held unsustainable and the appeal was allowed with consequential relief.

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Issues: Whether amounts collected as charity and shown separately in the manufacturer's invoices were includible in the assessable value for central excise purposes.

Analysis: The dispute concerned collections described as charity in the invoices. The earlier order in the assessee's own case had applied the principle that dharmada or charity receipts charged from customers do not form part of the normal price when the amount is meant only for charitable purposes and there is no allegation of its use for any other purpose.

Conclusion: The amount collected as charity was not includible in the assessable value, and the demand was unsustainable.

Final Conclusion: The appeal was allowed with consequential relief in accordance with law.

Ratio Decidendi: Amounts collected from customers and specifically shown as charity or dharmada, when meant only for charitable purposes and not shown to have been used otherwise, do not form part of the assessable value under central excise valuation.

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