Excise valuation excludes excess equalised freight over actual transport cost when freight is treated as a separate charge.

Excise assessable value does not include the excess of equalised freight collected over actual freight incurred, because duty is chargeable on manufacture and not on the dealer's transportation profit. A fixed freight scheme may be excluded from valuation to the extent it represents genuine freight, while only the excess collection is outside the assessable value. The impugned order was set aside for not addressing binding precedents relied on by the assessee, and the appeals succeeded on that valuation principle.

---

---

Issues: Whether the excess amount collected towards equalised freight over the actual freight incurred was includible in the assessable value for excise duty purposes.

Analysis: The issue was governed by the settled principle that excise duty is chargeable on manufacture and not on the dealer's profit from transportation. The amount collected under a fixed freight or equalised freight scheme, to the extent it exceeded the actual freight paid, was held not to form part of the assessable value. The earlier appellate findings were set aside as the impugned order did not deal with the binding precedents relied upon.

Conclusion: The excess freight amount was not includible in the assessable value, and the appeals succeeded.

---