Depot-based valuation of excisable goods upheld where assessable value follows wholesale sale price from the place of removal.

Where excisable goods are cleared through a depot treated as the place of removal, assessable value must reflect the price at which the goods are ordinarily sold in wholesale trade from that depot. On that footing, the Tribunal accepted that exclusion of the relevant charges from the Chennai unit's assessable value justified revision and demand of differential duty. It found no legal infirmity in the Commissioner's view, upheld the valuation adopted by the Commissioner (Appeals), and declined to interfere with the order setting aside the adjudication. The Revenue's challenge therefore failed, including the associated penalty demand.

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Issues: Whether the assessable value for excisable goods cleared through a depot had to be based on the price charged from the depot to independent buyers, and whether the demand of differential duty with penalty could be sustained.

Analysis: The Tribunal accepted the finding that, where the depot was treated as a place of removal under the amended valuation scheme, the assessable value was required to reflect the price at which the goods were ordinarily sold in wholesale trade from that place of removal. On that basis, the non-inclusion of the relevant charges in the Chennai unit's assessable value warranted revision and demand of the differential duty. The Tribunal found no legal infirmity in the Commissioner's view and saw no basis to interfere with the order setting aside the adjudication.

Conclusion: The valuation adopted by the Commissioner (Appeals) was upheld and the Revenue's challenge failed.

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