Excess freight excluded from excise valuation where no evidence showed it was anything beyond transport charges.

Excess freight collected over actual transport cost was held not to form part of the assessable value for central excise, because excise is a tax on manufacture and not on profit earned from transportation. The Department produced no evidence that the differential freight was anything other than transportation charges, so the amount was excluded from valuation and the appeal was allowed.

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Issues: Whether the amount collected as freight in excess of actual transport cost is includible in the assessable value for central excise purposes.

Analysis: The dispute turned on whether the differential freight represented part of the value of the goods. The Department adduced no evidence to show that the excess freight was anything other than transportation charges, and the principle that excise is a tax on manufacture and not on profit made on transportation was applied.

Conclusion: The excess freight was not includible in the assessable value and the appeal was allowed.

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