Captive consumption valuation of molasses upheld on comparable market price where no statutory price fixation was proved.

Captive consumption valuation of molasses was assessed by reference to the comparable purchase price paid by Western Maharashtra Development Corporation, because no statutory price fixation for the relevant period was shown. A committee recommendation could not be treated as a statutory price or a valid valuation basis without supporting statutory instrument, and the objection that the purchaser was not the manufacturer did not defeat reliance on a market-reflective comparable price where geographical proximity was satisfied. The plea that the corporation bought inferior grades also failed for lack of evidence, and a different valuation adopted in another matter was not persuasive because it turned on its own record.

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Issues: Whether the assessable value of molasses captively consumed by the appellants was to be determined at the lower claimed price or on the basis of the price at which the Western Maharashtra Development Corporation purchased the goods.

Analysis: No statutory price fixed by the competent authority for the relevant period was shown. A committee recommendation, even if assumed to exist, could not be treated as a statutory price or as a valid basis for valuation in the absence of any supporting statutory instrument. The objection that the purchaser was not the manufacturer did not advance the appellants' case, because the comparable purchase price could still be relied upon where the price reflected the market value and the geographical proximity criterion was satisfied. The alternative plea that the goods purchased by the corporation were of different and inferior grades also failed for want of evidence. The further reliance on a different valuation in another matter did not assist the appellants, as that was based on its own evidence and circumstances.

Conclusion: The higher valuation adopted by the department was upheld and the appellants' challenge was rejected.

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