Invoice price valuation under excise notification depends on absence of disqualifying relationship; contractual price fixing alone is not enough.

Invoice price valuation under Notification No. 120/75 was available where the sale price was not shown to be influenced by any commercial, financial or other disqualifying relationship. Mere execution of contracts fixing the price did not, by itself, disprove arm's length dealing. On the facts, there was no material showing such a disqualifying relationship between the manufacturer and the buyers, so proviso (iv) did not bar the notification benefit. The applicants were therefore entitled to assessment on invoice price basis, and the excise duty assessment was upheld on that basis.

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Issues: Whether the applicants were entitled to assessment of belt conveyors on the basis of invoice price under Notification No. 120/75 dated 30-4-1975, and whether proviso (iv) was inapplicable because the sale prices were not influenced by any commercial, financial or other relationship between the manufacturer and the buyers.

Analysis: The proviso excludes the benefit of the notification only where the invoice price is influenced by a commercial, financial or other relationship of the kind specified therein. Mere execution of contracts fixing the sale price does not by itself show absence of arm's length dealing. On the facts, there was nothing to indicate that the contracts between the applicants and the purchasers were influenced by any disqualifying relationship. The transactions were therefore treated as arm's length and the condition in proviso (iv) was held satisfied.

Conclusion: The applicants were entitled to the benefit of assessment on the basis of invoice price under Notification No. 120/75 dated 30-4-1975.

Final Conclusion: The revision application succeeded, and the duty assessment was held to be deductible on invoice price basis.

Ratio Decidendi: Where invoice price is not shown to be influenced by any commercial, financial or other disqualifying relationship, the benefit of the excise valuation notification cannot be denied merely because the sale price was fixed under a contract.

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