Ex-factory price governs excise valuation where genuine factory-gate sales exist; depot sales do not alter assessable value.

Where genuine factory-gate sales exist and the ex-factory price is ascertainable, valuation under Section 4 of the Central Excises and Salt Act, 1944 must be based on that price. Depot sales at a higher price do not displace the factory-gate value unless there is evidence that the factory price is not genuine. On the facts noted, no such finding or evidence existed, so the depot price was irrelevant for assessable value and the department's challenge failed.

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Issues: Whether, for valuation under Section 4 of the Central Excises and Salt Act, 1944, the ex-factory price was to be adopted where factory-gate sales were admittedly made and the assessee also sold goods through a depot.

Analysis: The departmental case rested on the contention that depot sales were at a higher price and that factory sales were negligible. The record, however, showed no finding that the factory-gate sale price was not genuine. The ex-factory price was ascertainable and there was no evidence to displace it. In such circumstances, the price at the depot was not relevant for valuation.

Conclusion: The ex-factory price was correctly taken as the basis of valuation under Section 4, and the department's appeals were not sustainable.

Ratio Decidendi: Where the ex-factory price is ascertainable and genuine factory-gate sales exist, valuation must be based on that price under Section 4, and depot sales do not alter the assessable value.

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