Ex-factory price governs excise valuation where factory gate price is ascertainable, excluding consignment, depot and branch expenses.

Where an ascertainable ex-factory wholesale price existed at the factory gate, that price was treated as the proper basis for valuation under Section 4 of the Central Excises and Salt Act, 1944. Expenses incurred by consignment agents, depots and branches were not includible in the assessable value, because sales through consignment agents did not justify treating depot-based valuation as a separate basis when the factory gate price was available and identifiable. The valuation adopted in the impugned order was therefore rejected.

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Issues: Whether expenses incurred by consignment agents, depots and branches were includible in the assessable value of excisable goods when an ascertainable ex-factory wholesale price was available at the factory gate.

Analysis: The available ex-factory price was held to be the proper basis for valuation under Section 4 of the Central Excises and Salt Act, 1944. Sales through consignment agents were not treated as creating a separate class of buyers for the purpose of substituting depot-based valuation where factory gate price existed and was ascertainable.

Conclusion: The expenses incurred by consignment agents, depots and branches were not includible in the assessable value, and the valuation adopted in the impugned order was rejected.

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