Excise valuation must follow the genuine sale price actually realised; procedural lapse in revised price list approval cannot justify higher duty.

For excise valuation under Section 4, the genuine lower sale price actually realised from independent buyers is the ordinary wholesale price for assessment where that price is undisputed. The failure to file and obtain approval of a revised price list under Rule 173-C is procedural and, by itself, does not justify demanding differential duty on a higher approved price that was not actually realised. Assessment must therefore proceed on the genuine transaction price shown in the invoices, and the higher price list cannot be used to sustain the demand.

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Issues: Whether differential excise duty could be demanded on the basis of an earlier approved price list when the goods were in fact sold during the disputed period at a lower genuine price, notwithstanding failure to have the revised price list approved.

Analysis: The requirement to file and have approved a revised price list under Rule 173-C of the Central Excise Rules, 1944 is procedural and is intended to bring the declared value in line with the correct assessable value under Section 4 of the Central Excises and Salt Act, 1944. Where the department does not dispute that the goods were actually sold to independent buyers at the lower price shown in the invoices, and does not challenge the genuineness of that price, the genuine lower price represents the ordinary wholesale price for assessment. The mere omission to complete the revised price-list procedure does not, by itself, justify duty being levied on a higher price that was not actually realized.

Conclusion: Differential duty was not payable on the higher approved price list. The demand was unsustainable and the conclusion is in favour of the assessee.

Final Conclusion: The order confirming the duty demand was set aside and the appeals were allowed because assessment had to proceed on the genuine sale price actually realized during the relevant period.

Ratio Decidendi: For excise valuation under Section 4, duty cannot be levied on a higher approved price where the actual sale price to independent buyers during the relevant period is genuine and undisputed.

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