Secondary packing costs excluded from excise assessable value when used only for safe transport, not normal wholesale packing.

Packing expenses incurred solely for safe transport of goods to distant places, and not as the normal mode of packing in wholesale trade, are excluded from assessable value under Section 4 of the Central Excise Act, 1944. On that footing, secondary packing was held not to form part of the assessable value, following the view taken in the assessee's own case. The result was that the cost of such secondary packing was not includible for excise valuation purposes.

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Issues: Whether the cost of secondary packing was includible in the assessable value under Section 4 of the Central Excise Act, 1944.

Analysis: The packing in question was found to be used only for safe transport of the goods to distant places and not as the normal mode of packing in wholesale trade. Following the view already taken in the assessee's own case, such packing cost was treated as not forming part of the assessable value.

Conclusion: The cost of secondary packing was not includible in the assessable value, and the issue was decided in favour of the assessee.

Ratio Decidendi: Packing expenses incurred solely for safe transportation and not forming part of the normal wholesale mode of packing are excluded from assessable value under Section 4 of the Central Excise Act, 1944.

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