Excise valuation of advertising expenses turned on proof that such costs were outside the sale price and assessable value.

Advertising expenses incurred by the manufacturer were held not to be includable in the assessable value for excise valuation because the department did not establish that they were recovered over and above the sale price. The price lists did not exclude those expenses from the declared value, the show cause notice lacked supporting evidence, and a mere reference to the balance sheet was insufficient to prove that the expenses fell outside the assessable value. On that basis, inclusion of the advertising expenses was not justified and the appeal was allowed.

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Issues: Whether advertising expenses incurred by the manufacturer were includable in the assessable value of the goods for excise valuation purposes.

Analysis: The assessee contended that the advertising expenses were not part of the assessable value shown in the price lists and could not be added unless the department established that they were over and above amounts recovered from purchasers. The adjudicating authority did not address this aspect, and the notice to show cause did not cite evidence to support exclusion from the declared value. Mere reference to the balance sheet was insufficient to establish that the expenses did not already form part of the sale price.

Conclusion: The advertising expenses were not shown to be outside the assessable value, and their inclusion was not justified. The appeal was allowed.

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