Factory gate price governs valuation for both factory sales and depot sales, with depot charges excluded from assessable value.

Where goods are sold both at the factory gate and through depots, the factory gate price is the proper basis for determining assessable value for both categories of sales. Depot operating charges collected at the depots were not treated as a separate element altering assessable value, and the argument that depot purchasers formed a different class of buyers was rejected as irrelevant to valuation. The valuation adopted on the basis of factory gate price for both factory gate sales and depot sales was therefore sustained.

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Issues: Whether the charges collected at the depots towards depot operating charges were includable in the assessable value, and whether the factory gate price could be applied for goods sold at the factory gate as well as goods sold from the depots.

Analysis: The dispute was governed by the principle that where sales are made both at the factory gate and through depots, the factory gate price constitutes the proper basis for valuation of both categories of sales. The contention that depot purchasers formed a different class of buyers was found irrelevant to the valuation question. The Commissioner (Appeals) had applied the settled rule correctly on the facts.

Conclusion: The charges collected at the depots were not to be separately treated so as to alter the assessable value, and the factory gate price was correctly applied to both factory gate sales and depot sales.

Final Conclusion: The Department's challenge failed, and the valuation adopted by the Commissioner (Appeals) was sustained.

Ratio Decidendi: Where goods are sold both at the factory gate and through depots, the factory gate price is the proper basis for determining assessable value for both sets of sales.

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