Differential excise valuation for separate classes of buyers upheld where lower dealer prices reflected genuine commercial pricing.

Different classes of buyers may be assessed at different prices for central excise valuation under Section 4 of the Central Excise Act. The lower prices charged to northern region dealers were treated as commercial prices, as the record did not show that they were not genuine market prices. The northern buyers were regarded as a separate class, and the lower pricing was explained by market competition and related expenses. On that basis, duty paid on the northern dealer prices was accepted and the additional demand was set aside in favour of the assessee.

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Issues: Whether the sale prices charged to northern region dealers, being lower than the ex-factory prices charged to other dealers, were liable to be accepted for central excise valuation under the rule applicable to different classes of buyers.

Analysis: Prices charged to different classes of buyers are permissible for assessment under Section 4 of the Central Excise Act. The record did not show that the northern region prices were not commercial prices. The northern buyers constituted a separate class of buyers, and the lower prices were explained by market competition and related expenses.

Conclusion: The duty was correctly paid on the basis of the northern dealer prices, and the additional demand had no legal or factual basis. The demand was set aside in favour of the assessee.

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