Regional wholesale price governs excise valuation of retail clearances where regional clearances relate to distinct markets.

For central excise valuation, retail clearances are to be assessed on the wholesale price where wholesale prices are available, and regional wholesale prices may be used to determine assessable value. Clearances must be valued according to the region to which they relate, so a lower wholesale price from another region cannot be applied to goods cleared in a different region. On that basis, retail clearances in Uttar Pradesh were assessed at the wholesale price applicable to Uttar Pradesh, while clearances to the rest of the country were assessed at the wholesale price applicable to the relevant region.

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Issues: Whether, for central excise valuation, retail clearances in Uttar Pradesh had to be assessed at the wholesale price applicable to Uttar Pradesh or at the lower wholesale price applicable to other regions.

Analysis: Where wholesale prices are available, retail sales are also to be assessed on wholesale prices. Regional wholesale prices may be adopted for determining assessable value, and clearances are to be valued according to the region to which they relate.

Conclusion: The retail clearances in Uttar Pradesh were rightly assessed at the wholesale price applicable to Uttar Pradesh, and clearances to the rest of the country were rightly assessed at the wholesale price applicable to that region.

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