Assessable value and technical service charges require factual finding on timing and nature of recovery before inclusion.

Technical service charges are includible in assessable value only when realised before manufacture and connected with the manufacture of goods; post-manufacture charges are excluded. Because the record did not contain a factual finding on when the charges were recovered or the nature of the services for which they were paid, the matter could not be decided on merits. A fresh factual determination was therefore required, with the manufacturer to be given a reasonable opportunity of being heard. The appellate order was modified to that extent and the dispute was remitted for limited reconsideration on includibility of the service charges in assessable value.

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Issues: Whether the question of includibility of technical service charges in the assessable value required remand for a fresh factual determination.

Analysis: Technical service charges are includible in the assessable value only if they are realised before manufacture and are connected with the actual manufacture of the goods. Charges realised after manufacture are post-manufacture expenses and cannot be included in assessable value under the excise valuation provision. As there was no finding by the authorities below on the stage at which the service charges were recovered or the nature of the services to which they related, the matter could not be decided on the existing record. A clear factual finding was therefore necessary after giving the manufacturer a reasonable opportunity of being heard.

Conclusion: The issue was remitted to the adjudicating authority for fresh determination, and the appellate order was modified to that extent.

Final Conclusion: The dispute on valuation was not finally decided on merits and was sent back for a fresh adjudication limited to the includibility of the technical service charges in assessable value.

Ratio Decidendi: Post-manufacture charges cannot be included in assessable value, and where the record lacks a factual finding on the stage and nature of recovery, remand is required for fresh adjudication.

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