Ex-factory price controls excise valuation where ascertainable; depot sales do not override the factory gate benchmark.

Where factory gate sales are available and an ex-factory price can be ascertained, that price governs valuation under Section 4 of the Central Excises and Salt Act, 1944. Depot sales do not displace the factory gate benchmark merely because they are substantial, and transportation charges are not relevant to the assessable value on that basis. The valuation adopted by the lower appellate authority was sustained, and the Department's challenge failed.

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Issues: Whether, where factory gate sales are available, the ex-factory price must form the basis for determining assessable value even in relation to depot sales.

Analysis: The Tribunal applied Section 4 of the Central Excises and Salt Act, 1944 and held that as long as an ex-factory price is ascertainable, that price is the proper basis for valuation. On that footing, the presence of substantial depot sales did not displace the factory gate price, and transportation charges became irrelevant for valuation.

Conclusion: The ex-factory price was held to be the correct basis for determining assessable value, and the Department's challenge failed.

Final Conclusion: The valuation adopted by the lower appellate authority was sustained, with the result that the Department's appeal did not succeed.

Ratio Decidendi: Where an ex-factory price is ascertainable, it is the governing basis for valuation under Section 4 of the Central Excises and Salt Act, 1944, and depot sales do not override that benchmark.

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