Assessable value in excise excludes site fabrication, transport, and bought-out items used after factory removal.

Central excise duty is chargeable on goods manufactured in the factory and on their value at the time of removal, so post-manufacture costs cannot be added to assessable value. Site fabrication expenses for erection of the dam gate, transportation charges from the factory to the site, and the value of bought-out items taken directly to the work site were all held outside the assessable value of the goods cleared from the factory. The disputed additions were therefore impermissible, and the duty demand was unsustainable.

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Issues: Whether the assessable value for central excise duty could include the cost of fabrication work done at site for erection of the dam gate, transportation charges from the factory to the site, and the cost of bought out items used in the erection of the dam gate.

Analysis: Duty under the excise law is chargeable on goods manufactured in the factory and on their value as at the time of removal. Costs incurred after manufacture and removal, including site fabrication expenses and transportation to the construction site, are not part of the assessable value of the goods cleared from the factory. Bought out items taken directly to the work site for construction of the dam gate also cannot be included in the value of goods manufactured by the assessee.

Conclusion: The disputed additions to assessable value were impermissible and the duty demand was unsustainable.

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