Assessable value of transformers excludes site-supplied transformer oil not brought into the factory.

Transformers cleared from the factory without transformer oil had to be assessed on their value at the time and place of removal; oil supplied directly at the installation site by oil companies could not be added to the assessable value. On these facts, the site-supplied oil was outside the factory clearance value, and an earlier final order on identical facts was treated as binding. The demand for differential excise duty therefore could not be sustained.

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Issues: Whether the value of transformer oil supplied at the installation site, and not brought into the factory, was includible in the assessable value of transformers for excise duty.

Analysis: The transformers were cleared from the factory without oil, and the oil was supplied directly at the site of installation by oil companies. On these facts, the value of the transformer at the time and place of removal could not include the value of transformer oil. The issue stood covered by an earlier final order on identical facts, which was treated as binding.

Conclusion: The value of transformer oil was not includible in the assessable value of the transformers, and the demand of differential duty could not be sustained.

Ratio Decidendi: Goods cleared from the factory are to be assessed on the basis of their value at the time and place of removal, and value of an item supplied only at the installation site cannot be added to the assessable value.

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