Excise valuation must be fixed at removal from the factory, not by later wholesale sale price after further trading.

Excise valuation is determined at the time and place of removal, based on the condition in which goods are cleared from the assessee's unit. Later wholesale sale price after further processing or trading does not govern assessable value, because subsequent market transactions do not alter the valuation base for excise purposes. On the facts noted, the Supreme Court decision in Bombay Tyre International was treated as inapplicable, and the assessable value was correctly fixed at clearance; no differential duty arose on the later trading price.

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Issues: Whether the assessable value of the excisable goods was to be fixed at the stage of removal from the assessee's unit or on the basis of the later wholesale sale price after further processing and trading.

Analysis: The goods were assessed at the stage and in the condition in which they were cleared from the assessee's unit. The dispute turned on whether later sale price could govern valuation. It was held that excise assessment and valuation are determined at the time and place of removal and are not dependent on the subsequent sale of the goods. The Supreme Court decision in Bombay Tyre International was found inapplicable on the facts.

Conclusion: The assessable value was correctly determined at the point of clearance from the assessee's unit, and no differential duty was payable on the later trading price.

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