Ex-factory sale at factory gate confirmed where contract terms and freight allocation supported buyer-side delivery terms.

The contract terms indicated an ex-factory price, supporting the view that sale took place at the factory gate rather than at the buyer's premises. Taking transit risk insurance by the seller did not change the character of the sale, and the fact that freight was borne by the buyer in most transactions further supported factory-gate sale treatment. On that basis, the impugned order could not be sustained and was set aside.

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Issues: Whether the sale was effected at the factory gate on an ex-factory price basis so as to support the assessee's claim that the impugned order could not be sustained.

Analysis: The contract terms showed that the price was ex-factory. The fact that transit risk insurance was taken by the seller did not alter the character of the sale. The freight in most transactions was borne by the buyer, which supported the inference that the sale took place at the factory gate and not at the buyer's premises.

Conclusion: The sale was held to have taken place at the factory gate on an ex-factory price basis, and the appeal was allowed by setting aside the impugned order.

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