Depot sales and factory gate pricing: consignment agent sales did not create a separate buyer class for valuation.

Depot and consignment agent sales were not shown to involve a different class of buyers from ex-factory sales for valuation purposes, and no differential pricing by buyer class was established. The Tribunal noted that Taparia Tools did not support the proposition that depot sales automatically constitute sales to a separate buyer class, and relied on the Board's circular clarifying that transfer to regional depots does not by itself create different classes of buyers. Factory gate price therefore remained the proper basis for assessment, and the Revenue's challenge failed.

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Issues: Whether sales from depots and consignment agents' premises could be treated as sales to a different class of buyers from sales at the factory gate for valuation purposes.

Analysis: The assessee's buyers on ex-factory basis and those purchasing from depots were not shown to constitute different classes of buyers, nor was there any case that prices varied by buyer class. The Tribunal held that the earlier decision in Taparia Tools did not support the proposition that depot sales amount to sales to a different class of buyers. The Board's Circular No. 3/90-CX. 1 dated 25-1-1990 also clarified that transfer to regional sales depots does not create different classes of buyers and that factory gate price applies where it is genuine.

Conclusion: Depot and consignment agent sales were not to be treated as sales to a different class of buyers, and factory gate price remained the proper basis for assessment. The Revenue's appeal failed.

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